Carbon Trust to promote interest-free loans for SMBs

The Carbon Trust will today launch a new marketing campaign designed to promote its offer of interest-free loans to small and medium-sized businesses (SMBs) investing in energy-saving measures.

The new campaign comes as the advisory group released research showing that many UK SMBs are failing to cut their carbon footprint despite the potential cost savings attainable through investments in energy-efficient technologies.

The survey of over 800 senior managers at companies with under 250 staff found that while 63 per cent realised they could reduce their carbon emissions through low- and no-cost measures, more than two-thirds said their business had made no investment to reduce carbon emissions. Moreover, nine out of 10 respondents said their firm did not measure its carbon footprint.

Almost all (93 per cent) respondents said their company did not measure carbon emissions, while many were unaware they could gain support in implementing energy-efficiency measures.

As a result The Carbon Trust said it would launch a marketing campaign to promote its interest-free Energy Efficiency Loan scheme, which offers firms loans to replace or upgrade existing equipment with more energy-efficient alternatives.

It said that this year it has committed almost £27m to SMBs through the initiative but was keen to drive wider adoption of the scheme. It said it would launch a series of new online tools to help SMBs cut their emissions, and run new adverts online and in the regional and trade press to promote its loan scheme.

"SMBs account for around 20 per cent of the country’s overall emissions so it is essential they are supported to act on climate change," said Michael Rea, Carbon Trust chief operating officer. "We are significantly increasing our interest-free loans pool to help more businesses invest in new energy-efficient equipment, save money and cut their carbon footprint. We have also launched a range of new online tools designed with SMBs in mind, to help them reduce their carbon emissions and cut costs."

The move was welcomed by business groups, who argued that such support was needed to make it easier for resource-strapped smaller businesses to invest in environmental best practices that can cut carbon emissions and reduce their cost base in the process.

"Small enterprises often find it hard to navigate their way through the often conflicting advice on practical measures to take," observed Miles Templeman, director general of the Institute of Directors. "A targeted scheme like this one could prove helpful to many. "