Chris Huhne MP and Power Efficiency discuss business properties slashing emissions and making money

Posted: March 01, 2011

Today Chris Huhne MP will welcome a report explaining how energy efficiency in the private sector can save business £6 billion a year. The report explores the role of the commercial property sector in making these changes.

The result of an inquiry by Carbon Connect, the report “Energy Efficiency: The Untapped Business Opportunity” has cross-parliamentary party approval and backing from across the private sector.

The Rt Hon. Chris Huhne MP, Secretary of State for Energy and Climate Change will say:
“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.”

Benefits to business

Carbon emissions from non-domestic buildings are responsible for approximately 18% of the UK’s total. If national CO2 emissions are to be successfully cut by 80% by 2050, all new and existing buildings will need to become zero carbon over the next 40 years.

Given that a significant proportion of businesses occupy rented premises, this will require significant investment on the part of property developers and institutional investors. And for the 4.8 million small businesses currently operating in the UK - tackling energy efficiency in buildings represents an opportunity to make significant cash and carbon savings.

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

Recommendations to Government

The report makes bold recommendations for how Government and the commercial property sector can work together to tackle energy efficiency. For example, the report recommends that:

• Government should amend the Enhanced Capital Allowance scheme to make tax allowances formally transferable between landlords and tenants.
• Government should work with industry bodies such as the British Property Federation and UK Green Building Council to develop a standard form contract for renewable generation projects in the commercial property sector.
• Government should work with the insurance industry to establish insurance packages for renewable generation projects in the commercial property sector and to develop suitable low cost insurance policies for energy efficient projects.

These are just some of the 15 recommendations the report makes, focussing on a wide range of issues, alongside the role of the commercial property sector. To see the document and its recommendations in full, visit here.

Benefits to the public

Moreover, the UK faces legally binding targets to reduce greenhouse gas emissions by 34% by 2020; tackling the energy efficiency in buildings will help achieve this target.

Lord Teverson, Liberal Democrat peer and co-chair of the inquiry said:
“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.”

Only last Monday, the United Nation’s called for 2% of worldwide income to be invested in an energy-efficient “green economy”. The UK already has a framework of incentives to encourage the generation of renewable energy. If government and the private sector follow the recommendations of this report, the UK can develop a thriving market for investment in energy efficiency too. Through this, business can help the drive towards a low-carbon United Kingdom.

Meanwhile, Martin Baxter, Executive Director - Policy at the Institute of Environmental Management and Assessment (IEMA) welcomed the report on behalf of environmental practitioners:
“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.”

For further information please contact:
Hollie Smith
Power Efficiency 
Tel: 0208 269 6100
Email: hollie.smith@powerefficiency.co.uk