Cutting carbon 'means cutting costs'

Business energy may soon be greener thanks to a government initiative which aims to help organisations save money on their gas and electricity bills through a greater adoption of energy efficiency.

The Carbon Reduction Commitment Energy Efficiency Scheme is targeted primarily at large public and private organisations. Major business energy users will be required to take part in the scheme from April 1st 2010.

Under the plans, participants will be required to monitor their energy use, report emissions and purchase carbon allowances to offset their usage.

Saving money with business energy efficiency

The Department of Energy and Climate Change has detailed that it is estimated that reducing energy use will save organisations a total of £1 billion each year by 2020.

Under the initiative, recognition will be given to businesses which use onsite renewable energy, such as wind energy or solar panels and by 2020 the scheme is expected to have delivered emissions savings of at least 4.4 million tonnes of CO2 per year.

It is hoped that both public and private businesses will get involved - which could see firms getting a financial helping hand during the economic downturn through the money they will save on reduced gas and electric bills.

Cutting carbon is cutting costs

Commenting on the business energy news, James Ramsay, commercial director of Carbon Clear, explains that the government is looking to target some 5,000 UK businesses with the scheme.

"Businesses that have had appliance and energy management capabilities are probably reasonably well informed, but those small businesses, where energy costs are less material, [are likely to be] less so," he notes.

And Mr Ramsay concludes that by monitoring business energy use, companies were likely to save money.

"Our experience is that as soon as organisations start managing their carbon they start reducing it and if you cut carbon, you cut costs," he concludes.