Media Release: Embargoed until 1st March 2011
Chris Huhne MP on how the private sector can help secure a low-carbon
future for the UK
Today Chris Huhne MP will welcome a report explaining how energy efficiency in the private
sector can cut carbon, safeguard UK fuel-security and save business £6 billion a year.
The result of an inquiry by Carbon Connect, the report “Energy Efficiency: The Untapped
Business Opportunity” has cross-party approval and backing from across the private sector.
The Rt Hon. Chris Huhne MP, Secretary of State for Energy and Climate Change will say:
“Energy efficiency is an untapped opportunity for all UK businesses, whatever their size. By
saving energy, businesses can slash overheads and boost the bottom line. What’s more, by
cutting carbon, the private sector can play its part in reducing the UK’s emissions. Carbon
Connect’s report is a welcome addition to this debate.”
Benefits to the Environment
As the UK faces legally binding targets to reduce greenhouse gas emissions by 34% by
2020, and a potentially widening gap between future energy supply and demand, the
nation’s energy consumption needs to be addressed.
Lord Teverson, Liberal Democrat peer and co-chair of the inquiry said:
“With government leadership, businesses across the UK can thrive, while securing a lowcarbon and fuel-secure future for the nation. Now, more than ever before, we must reduce
the amount of carbon we emit as a country - reducing energy consumption across the
private sector is in both the private and public interest.”
Only last Monday, the United Nation’s called for 2% of worldwide income to be invested in
an energy-efficient “green economy”. The UK already has a framework of incentives to
encourage the generation of renewable energy. If government and the private sector follow
the recommendations of this report, the UK can develop a thriving market for investment in
energy efficiency too. Through this, business can help the drive towards a low-carbon
United Kingdom.
Recommendations to Government & Business
The report makes bold recommendations for how Government and the private sector can
work together to tackle energy efficiency. For example, the report recommends that:

Government should deliver energy policy in line with the
priorities outlined in an “Energy Management Hierarchy”, which
describes how energy efficiency is most easily achieved through
avoiding and reducing energy use.

Government should introduce a mandatory greenhouse gas
reporting requirement for large companies from 2012, and
develop a single framework for UK businesses to use to report
their greenhouse gas emissions.

Government should ensure that a robust system is developed
for targeting SMEs under the Green Deal.

The Department for Communities and Local Government should be consulted on the
potential to offer local tax rebates to businesses that improve their energy efficiency.

Businesses should ensure that a non-executive director takes responsibility for raising
energy saving opportunities at board level.
These are just 5 of the 15 recommendations the report makes, focussing on greenhouse
gas reporting, project financing, skills and support to SMEs, alongside the role of the
commercial property sector. To see the document in full, visit here.
Benefits to business
Using energy wastefully currently costs UK business £6 billion a year. This figure is only set
to rise as Ofgem estimates that energy prices could climb by over 40% in real terms over the
coming decade.
For the 4.8 million small businesses currently operating in the UK, which account for
approximately 45% of total business energy consumption and employ nearly 60% of the
private sector workforce, tackling inefficiency can reap significant savings.
The case studies in the report demonstrate the rewards available to small businesses willing
to make the leap. For example, the Cavan Bakery in Hampton Hill, Middlesex used the
Carbon Trust 0% loan scheme to buy new and more efficient ovens, from which it has cut its
gas consumption by 75%, enabling it to counter rising energy costs and ride out current
financial strains. The Bakery’s now looking to source some energy-efficient vans.
And large businesses will benefit too. “The business case for energy efficiency is clear and
compelling. Few other investments get anywhere near that rate of return,’ said Hugh Jones,
managing director of Carbon Trust Advisory Services. “Yet our data suggests big
businesses are leaving around half the investment opportunities on the table and continuing
to waste billions of pounds on unnecessary energy use every year.”
Julius Brinkworth, industry expert and co-chair of the inquiry summarised:
“UK business simply cannot afford to ignore the financial benefits of being energy efficient.
By being smarter about how and when we use energy, the private sector can start making
sizeable savings within less than a year”.
Meanwhile, Martin Baxter, Executive Director - Policy at the Institute of Environmental
Management and Assessment (IEMA) welcomed the report on behalf of environmental
practicioners:
“Environmental practitioners working within business will welcome this report as further
recognition that their role makes a real difference. Businesses that are managing energy as
a resource are seeing real benefits from enhanced productivity and competitiveness.”
ENDS
For more information and images, please contact:
 Rosie Shute at Policy Connect, email: rosie.shute@policyconnect.org.uk, tel: 0207 202 8587
Notes to editor
 The report, “Energy Efficiency: The Untapped Business Opportunity” was produced by
Carbon Connect, and sponsored by, Consensus Business Group (CBG) and Siemens.
 Carbon Connect is an independent not-for-profit coalition, which seeks to examine the key
challenges and opportunities resulting from the transition to a low carbon economy. For more
information, see http://www.policyconnect.org.uk/cc .
 Lord Teverson is a Liberal Democrat peer. He was previously the Lib Dem spokesperson for
Energy and Climate Change (08-10) and before that for Environment, Food and Rural Affairs
(06-8).
 Julius Brinkworth is Director of Energy Projects at Power Efficiency. Power Efficiency is an
energy management consultancy dedicated to cost and carbon reduction, saving money for
your business. For more information, see here.
 The Carbon Trust is a not-for-profit company with the mission to accelerate the move to a low
carbon economy. We provide specialist support to help business and the public sector cut
carbon emissions, save energy and commercialise low carbon technologies. For more
information, see here.
 The Institute of Environmental Management & Assessment (IEMA) is the UK’s leading
environmental professional association. IEMA has 15,000 members worldwide and
represents professionals working in FTSE 100 companies, public sector organisations,
SMEs, consultants and higher education. An independent, not for profit organisation funded
by its members, IEMA’s aim is to promote best practice standards in environmental
management, auditing and assessment for all industry sectors. For more information, visit
www.iema.net.