£550M Available in Green Loans to UK Businesses

UK BUSINESSES will be provided with funding of £550 million ($894.9 million) to help them invest in energy efficiency technology, it has been announced today (March 4).

The UK’s Carbon Trust and the financial arm of Siemens Financial Services will provide companies with loans over the next three years, businesses will be able to apply for the loans from the scheme from April 4.

Tom Delay, the chief executive of the Carbon Trust said: "Driving green growth in the UK is key to our economic recovery.

"A missing ingredient at present is access to affordable finance to enable business to make green investments. This new major finance facility will improve business competitiveness, cut carbon and boost green growth."

The Guardian newspaper reported: “The loans represent a significant new source of funding for energy efficiency measures and equipment, such as low-energy lighting and biomass heating.

The savings in the companies' power bills is expected to at least match the repayments of the loans. The measures will also cut the carbon footprint of UK business, which currently accounts for around 40% of UK emissions.”

The Guardian also quoted Miles Templeman, the director general of the Institute of Directors, who told the paper: "In today's high-energy cost environment, improving energy efficiency is a must for all businesses. The new scheme could play a significant role in stimulating innovative solutions."

John Sauven, the executive director of Greenpeace UK, told the The Guardian: "The Siemens-Carbon Trust green finance deal is exactly the sort of initiative that we need to see happening more frequently in the future. A green growth strategy can only work if it is backed by green finance."

Commercial rates will apply to all loans in the scheme and be for periods from one to seven years and for amounts as low as a £1,000 through to hundreds of thousands.

Picture of London's Canary Wharf by .martin.

Friday 4th March 2011

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