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Firms 'must take energy action'

22/11/2007

Businesses are not taking up enough of the Carbon Trust's recommendations, a National Audit Office (NAO) report has concluded.

It found firms had implemented less than 40 per cent of carbon savings identified between 2003 and 2006 and that over 60 per cent had not implemented more than half the recommendations made.

The Carbon Trust itself, a government-funded independent company tasked with aiding the UK's transition to a low-carbon economy, attracts warm praise from the report.

The NAO found it had saved organisations between £410 million and £655 million over the carbon savings' lifetime, over double the expenditure required to implement the recommendations.

And its environmental impact was also found to be positive. It is estimated to be responsible for cutting 4.4 million tonnes of CO2 emissions by 2010 on 1990 levels.

NAO chief Sir John Bourn said: "The Carbon Trust has done a good job at persuading businesses and public sector organisations to start tackling the problem and its work to date has proved value for money.

"Its achievement in reducing carbon dioxide emissions in 2006/07 by up to two million tonnes is commendable, but it is a small one in view of the scale of the challenge ahead.

"The Carbon Trust needs to build on its good work and extend its drive to encourage business leaders to review the carbon footprint of their organisation and to take decisive action to reduce carbon dioxide emissions."

The report recommended building stronger links with overseas organisations to accelerate the development of low-carbon technologies and said more needed to be done to persuade companies to participate.

This problem is especially apparent with large businesses, it noted. Only 12 per cent of those with annual energy bills exceeding £50,000 have worked with the Carbon Trust on cutting their carbon emissions.