There is nothing quite like an environmental disaster on the scale as the one unfolding in the Gulf of Mexico to concentrate politicians’ minds. President Barack Obama has already described the massive BP oil spill as an environmental 9/11 and in a speech this week from the Oval Office pushed for clean energy reform in the US to wean his country off its dependence on oil. Meanwhile, in the UK, Energy Secretary Chris Huhne has stated that the terrible events" that have allowed millions of gallons of crude oil to gush into the Gulf for nearly two months have strengthened the case for
energy efficiency in the UK economy. He’s spoken of the need for "radical thinking" to bring about a low carbon energy revolution.
This week, a major new report from the Centre for Alternative Technology (CAT) sets out how Britain could deliver a low carbon energy revolution and be carbon neutral within the next two decades – radical some may say, but CAT argues that this vision is achievable through investing in
renewables alone, without investment in risky, untested
technologies, such as carbon capture and storage, or costly nuclear energy. In fact, the report says it would transform Britain from an importer of gas and oil into a net exporter of green energy.
The report also talks about reducing energy demand by up to 50 per cent through a "deep retrofit" of Britain’s existing housing stock (i.e. more than just insulating lofts).
The Coalition Government has already made clear it wants to see mass scale roll out of energy efficiency measures across UK households through the 'Green Deal’, so at least that proposal should get a favourable response from policy makers.
What I don’t see much of, though, is direction or help for businesses – and I don’t mean big business. I’m talking about small to medium-sized enterprises (SMEs).
Driving low carbon recovery
SMEs make up the majority of businesses in the UK and account for half of its turnover. They also account for 99.9 per cent of workplaces and 68 per cent of the workforce in the UK. Not only are they the backbone of the economy, but they are also going to play a crucial role in Britain’s low carbon recovery. According to one study commissioned by mobile phone company O2, in 'new economy’ sectors, such as recycling, SMEs will be responsible for adding almost 700,000 more new employees than larger companies over the next decade. Yet most SMEs are far from 'green'.
A report just published by workplace solutions provider Regus, found that almost three quarters of SMEs in the UK still have no company policy to invest in energy efficient equipment. The recession is one explanation for this, but another is lack of awareness of the implications of doing nothing, climate change fatigue and a deep dislike of red tape.
The Carbon Trust’s interest-free loans for SMEs looking to invest in energy efficiency measures, for example, is simply too onerous for most SMEs in the UK looking to reduce their environmental impact and cut their energy bills. Some smaller schemes, such as a programme to get South East SMEs more energy efficient through a £500 grant, are much more accessible, but are just scratching the surface.
Business groups not doing enough
Government and businesses groups, such as the Chambers of Commerce and the Federation of Small Businesses, have to shoulder most of the blame for this lack of action. They are talking the talk now, but they have done far too little to date to help their members either understand the implications of unsustainable business practices or to incentivise them to change.
According to the Regus survey, almost half of UK companies said they would only invest in low carbon equipment if it were cheaper or the same cost to run as conventional equipment, yet more than three quarters of companies said they would significantly accelerate their green investments if there were tax incentives to help them.
On Tuesday, George Osborne will deliver his first Budget since becoming Chancellor. Everybody is expecting cuts, but if like Huhne he believes we need to think radically about delivering a green revolution, then he would do well to incentivise small businesses to be greener. After all they are going to drive our low carbon recovery.
Related content:
Green SMEs
Energy efficiency news
Wise up business resource
Related links:
www.cat.org.uk