Business failing to reduce emissions

Businesses need toi be made to see the financial gain of cutting emissions, the trust says

Tuesday, 20, May 2008 07:00

Businesses are failing to reduce their carbon emissions, the Carbon Trust has said.

The trust, which releases a report today on the move to a low-carbon economy, says small business have not yet been persuaded of the economic benefits of reducing emissions.

Edward Leigh, chairman of the public accounts committee, said: "Lot of businesses, especially smaller ones, are yet to be convinced that improving their energy efficiency makes commercial sense.

"The Carbon Trust must provide evidence to the contrary and also aim to assist more eligible small businesses under its interest free loan incentive scheme."

The trust is also accusing senior business executives of "reluctance" to prioritise emission reduction.

By the end of 2006/07 businesses and public sector organisations had implemented less than 40 per cent of carbon dioxide savings identified by the trust. Cost is thought to be the main factor.

The trust says it will persist in trying to convince businesses in the long-term share value of improving efficiency. But it also complained that it could not target those businesses and sectors responsible for large-scale emissions because of European Union state aid restrictions.