Small businesses demand government help to drive green gains

The government's upcoming Energy Security and Green Economy bill must include measures to help small and medium-sized businesses (SMBs) cut carbon emissions, according to a new report from the Federation of Small Businesses (FSB).

The report, titled Making Sense of Going Green, examines how SMEs can better contribute to the government's low-carbon 2020 targets and recommends a range of measures, including expanding the government's current green loan scheme for small businesses and offering incentives for firms that improve the energy efficiency of their buildings.

"The potential of the UK's 4.8 million small businesses to contribute to the fight against climate change and drive green economic growth […] must be harnessed when the government publishes its forthcoming non-domestic Green Deal and Energy bill," the report states.

The study cites research from the Carbon Trust which shows that if all UK businesses and public sector organisations undertook effective energy efficiency measures, they could save £3.6bn a year while slashing carbon emissions by 29 million tonnes.

Specifically, the report calls on the government to introduce a loan scheme for businesses that would see banks, energy and construction firms pay the upfront costs of major building energy efficiency upgrades; encourage firms in the worst G-rated buildings to invest in obtaining an F-rating; and waive planned increases to business rates for firms that improve building energy efficiency.

The report was released as the Welsh Assembly last week launched a package of measures to help SMEs profit from renewable energy.

Welsh environment minister Jane Davidson pledged to help small and medium-sized renewable energy installation companies access interest-free loans to cover the cost of gaining professional accreditation under the Microgeneration Certification Scheme (MCS).

The move was welcomed by the Renewable Energy Association as a positive step to encourage more firms and households to install microgeneration technologies and take advantage of the new feed-in tariff.

Businesses and households can only access the feed-in tariff if they use renewable energy technologies and installers that have gained MCS certification. However, some firms have complained that the cost of gaining accreditation can be prohibitive for small businesses.

"In this new and rapidly growing market, it is important that customers are protected, as the investments are significant both in terms of cost and brain power," said REA chief executive Gaynor Hartnell. "It is for this reason that there is a need for certification, but it must not be a barrier for installers and manufacturers. This scheme will help alleviate that."