Wednesday, March 2, 2011

Private sector can boost UK's low-carbon future, report finds

Energy minister Chris Huhne has today welcomed report findings that show energy efficiency in the private sector can cut carbon, safeguard UK fuel-security and save business £6 billion a year.

The influential report tackles the problem of legally binding targets to reduce greenhouse gas emissions and a potentially widening gap between future energy supply and demand and encourages a greater focus on the nation’s energy consumption.

The Carbon Connect report, “Energy Efficiency: The Untapped Business Opportunity”, has received cross-political party support and backing from across the private sector.

Secretary of State Huhne, said: “Energy efficiency is an untapped opportunity for all UK businesses, whatever their size. By saving energy, businesses can slash overheads and boost the bottom line. What’s more, by cutting carbon, the private sector can play its part in reducing the UK’s emissions. Carbon Connect’s report is a welcome addition to this debate.”

And Lord Teverson, Liberal Democrat peer and co-chair of the inquiry added: “With government leadership, businesses across the UK can thrive, while securing a low-carbon and fuel-secure future for the nation. Now, more than ever before, we must reduce the amount of carbon we emit as a country - reducing energy consumption across the private sector is in both the private and public interest.”

Last week, the United Nation’s called for 2% of worldwide income to be invested in an energy-efficient “green economy”. According to Carbon Connect, the UK already has a framework of incentives to encourage the generation of renewable energy. If government and the private sector follow the report's recommendations, the UK can develop a thriving market for investment in energy efficiency too.

The report makes bold recommendations for how Government and the private sector can work together to tackle energy efficiency. Its proposals include:

• Government should deliver energy policy in line with the priorities outlined in an “Energy Management Hierarchy”, which describes how energy efficiency is most easily achieved through avoiding and reducing energy use.

• Government should introduce a mandatory greenhouse gas reporting requirement for large companies from 2012, and develop a single framework for UK businesses to use to report their greenhouse gas emissions.

• Government should ensure that a robust system is developed for targeting SMEs under the Green Deal.

• The Department for Communities and Local Government should be consulted on the potential to offer local tax rebates to businesses that improve their energy efficiency.

• Businesses should ensure that a non-executive director takes responsibility for raising energy saving opportunities at board level.

Using energy wastefully currently costs UK business £6 billion a year. This figure is only set to rise as Ofgem estimates that energy prices could climb by over 40% in real terms over the coming decade.

For the 4.8 million small businesses currently operating in the UK, which account for approximately 45% of total business energy consumption and employ nearly 60% of the private sector workforce, tackling inefficiency can reap significant savings.

The case studies in the report demonstrate the rewards available to small businesses willing to make the leap. For example, the Cavan Bakery in Hampton Hill, Middlesex used the Carbon Trust 0% loan scheme to buy new and more efficient ovens, from which it has cut its gas consumption by 75%, enabling it to counter rising energy costs and ride out current financial strains.

And large businesses will benefit too. “The business case for energy efficiency is clear and compelling. Few other investments get anywhere near that rate of return,’ said Hugh Jones, managing director of Carbon Trust Advisory Services. “Yet our data suggests big businesses are leaving around half the investment opportunities on the table and continuing to waste billions of pounds on unnecessary energy use every year.”

Julius Brinkworth, industry expert and co-chair of the inquiry, concluded: “UK business simply cannot afford to ignore the financial benefits of being energy efficient. By being smarter about how and when we use energy, the private sector can start making sizeable savings within less than a year”.

Martin Baxter, Executive Director - Policy at the Institute of Environmental Management and Assessment (IEMA), added: “Environmental practitioners working within business will welcome this report as further recognition that their role makes a real difference. Businesses that are managing energy as a resource are seeing real benefits from enhanced productivity and competitiveness.”

Source: http://www.clickgreen.org.uk

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