CO2 reduction ‘not a business priority’ in face of unrealistic targets and financial pressures

Wednesday, April 29, 2009

More than eight out of ten businesses say Government targets to reduce CO2 emissions are unrealistic, while significant numbers do not see the benefit of a small carbon footprint and are relegating carbon reduction measures to concentrate on managing costs.

These are among the findings of npower’s Business Energy Index (nBEI), an annual report tracking business opinion on energy use and carbon emissions, published today.

In this latest index the majority of businesses (83%) said the target to reduce CO2 emissions by 80% by 2050 was unrealistic. Attitudes on the potential commercial opportunities of a small carbon footprint are equally downbeat; only 31% think new business will occur as a result of reducing emissions, compared to 47% in npower’s 2008 index.

The findings also reveal that the economic downturn is leading businesses to prioritise finances over CO2 reduction; 97% said they are currently more concerned with reducing costs than emissions.

Businesses believe it is still important for the UK to take a leading role in reducing global emissions with 68% confirming this. This is a drop from the 2008 index in which 88% of businesses backed the Government’s emission reduction plans.

Despite these opinions the Index reveals a renewed focus on energy efficiency measures, with the importance attached to energy efficiency at its highest level since 2005. Furthermore 80% of businesses say they are likely to increase energy efficiency initiatives, and while this was primarily for cost benefit, the same measures would also lead to emission reduction.

Energy efficiency was also rated as the most popular action for businesses to take to reduce emissions, with 43% giving this answer ahead of changing processes (22%) or switching to a green tariff (18%). However, the Index suggests that more needs to be done to support businesses; 51% said they thought the Government did not offer useful advice on the issues of carbon reduction and energy efficiency.

Julia Lynch-Williams, director of energy services at npower, said:

“The Index shows that most businesses do not see the commercial benefits from having a small carbon footprint, but we can’t escape the fact that climate change legislation and the strength of public feeling mean CO2 reduction remains important. The Government has set the UK on a path toward a low carbon economy and must now continue to stress to businesses the opportunities that will come from low carbon operations.

“Energy efficiency is an excellent way to save money and it’s encouraging that many businesses are looking at this to reduce costs. While it’s understandable that businesses are more focused on the bottom-line in the current economic crisis, we would encourage them to see energy management as an effective means of reducing emissions as well as costs.

“Our advice to businesses is to make energy efficiency a priority now and in the long term.”

This story was featured on The NPower Website.

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