Time for change
June 1st 2006

Dr Garry Felgate, director of Delivery & External Relations at the Carbon Trust looks at how companies can drive down energy use and bills

Climate change is the biggest environmental threat we currently face. The issue has recently been put into sharp focus by dramatic increases in energy prices, forcing all energy users to take a closer look at their costs. Aside from the cost imperative, reducing energy use is the easiest way to cut carbon emissions - the main cause of climate change. With business responsible for almost half of the UK's carbon emissions, companies must act now to cut their carbon emissions in the fight against climate change.

Address the challenge

How can the handling and storage sector address the challenge of wasted energy use in ways that keep costs down and deliver good value for customers? The potential to save money through energy efficiency is significant. A 20 per cent saving in energy consumption - easily achieved by many businesses - can have the same positive effect as a five percent increase in sales. A good place for companies to start looking for advice and information about cutting their energy bill is the Carbon Trust. An independent company supported by government, the Carbon Trust works with companies to help them cut their carbon emissions - and reduce their energy costs in the process. Last year the Carbon Trust helped businesses and public sector organisations in the UK save up to £200 million by fighting climate change.

Whilst many UK businesses are already taking action, more need to realise that climate change will have an impact on their operations. The extreme weather conditions that climate change can cause and the associated higher insurance premiums, coupled with legislation introduced to mitigate climate change, will affect business. Businesses will soon see the benefit if they start taking measures to mitigate climate change - they will be helping not only the environment but also their bottom-line as cutting carbon and energy use will save them money. Even small changes can make a difference. If businesses are unsure of what to do, the Carbon Trust can help. Businesses can call the Carbon Trust's free helpline on 0800 085 2005 to get expert advice on improving energy efficiency and reducing carbon emissions.

Simple steps

The following simple steps are ways in which organisations can reduce their carbon emissions:

• Use energy saving light bulbs. These use 75 per cent less energy than a standard bulb.
• Turn down the temperature in your buildings by 1 degree. This saves enough energy to power 13,600 washing machine cycles and saves upwards of £150 per year on heating costs
• Replace standard bulbs with low energy bulbs. Replacing just 10 bulbs saves enough CO2 to fill at least 3,000 milk bottles. This is equivalent to a cash saving of £65 per year in lighting costs
• Use air conditioning sparingly. Air conditioning can double a building's energy costs and the extra produced to air-condition a typical workplace is enough to fill around 30 hot air balloons every year or equivalent to printing almost 900 million sheets of A4 paper
Financial incentives

There are also financial incentives and tax breaks available for companies that decide that energy saving is too good a business opportunity to miss. For example, small or medium sized companies that want to stock up on energy-saving equipment such as lighting, boilers or insulation, the Carbon Trust offers its interest-free 'Energy Efficiency Loan' of up to £100,000 per company. This allows owners and managers to invest in energy reduction without being hit by a sizable up-front bill.

To be eligible, companies must be able to save at least £1,000 per year of their energy use and the equipment being purchased must be included on the Energy Technology List - a useful guide to energy saving products currently on the market.

Additionally, businesses can also apply to the Carbon Trust for an Energy Survey, where a specialist consultant carries out a review of energy use for a site and then produces a practical action plan. Surveys are subject to availability and eligibility.

For further information visit www.carbontrust.co.uk/energy

A number of companies are waking up to the cost savings available by cutting wasted energy use and in doing so are taking action against climate change.

Based in the West Midlands, Mueller Europe Ltd. manufactures copper tube, creating more than 100 tonnes per day. This is a highly energy intensive process which runs on a 24 hour basis Monday-Friday, and also uses 12 hour days at the weekend, leading to excessively high energy bills (more than £1m). The Carbon Trust survey forecast savings of over £76,000 per annum if all its recommendations were implemented. These include staff awareness measures, an improved metering system and the establishment of a formal site responsibility for energy management. Having drafted a strategy and action plan to achieve long term savings, the company is already realising cost benefits.