In an effort to encourage businesses to become more energy aware and efficient, the Carbon Trust has introduced over £100m in interest free loans.

The scheme allows small to medium sized businesses in England to borrow between £5k and £200k with the intention that the funds be invested into energy-efficient equipment. The scheme is also available to larger businesses in Scotland.

First announced in the Budget for 2009, the funding will be introduced over a 2 year period in addition to current funding being supplied by the Trust.
Estimates from the Trust claim that the funding could reduce businesses costs by up to 20% over 2009. This would equate to over £20m worth of savings each year on energy bills alone.

Ed Miliband (Secretary of State for Energy and Climate Change) has been a strong promoter of the scheme:
‘This real help means that businesses in every corner of Britain can now improve their energy efficiency and make real savings on their energy bills at a time when every penny counts.’

A recent case study in was published about Matchboard International Ltd. Matchboard International Ltd supplies flat pack furniture and MDF panels to the construction and DIY markets. Keen to reduce its energy bills, the company contacted the Carbon Trust, which recommended that the company install a new heating system powered by MDF wood waste. Although the total cost of the project was £34,000, the company would reduce its annual energy and disposal costs by £23,000, resulting in the interest-free loan being paid back in less than two years.

This is a great chance for businesses to take advantage of the loan and energy proof their sites. Saving money through saving energy is no brainer for businesses; however this could be just the start. Transport, like energy can cost businesses thousands of pounds unnecessarily if it is not managed properly. A Travel Plan can provide transport solutions to businesses that not only save money but also reduce the carbon foot print. The initial outlay for a travel Plan from GreenTravelPlans.co.uk is as little as £1499, and this cost should be offset by year on year savings made from implementing a package of initiatives.

To find out more, visit http://www.carbontrust.co.uk/energy/takingaction/about-loans.htm