DEPARTMENT OF ENERGY
AND CLIMATE CHANGE News Release (2009/060) issued by COI News
Distribution Service on 10 June 2009
Hospitals, leisure
centres, local authorities - and even central government
departments - will be able to save money and reduce their carbon
emissions by taking up new energy efficiency loans. The
Government, in partnership with Salix Finance and the Carbon Trust
will provide £51.5 million in interest free loans to help public
sector organisations take advantage of energy efficiency technology.
Minister for Energy and Climate Change, Joan Ruddock said:
"We estimate this fund could help public sector bodies save
around £14 million per year in fuel bills. Following the
announcement of our ambitious carbon budgets, all public sector
organisations should lead by example by pioneering ways to reduce
carbon emissions. I hope that schools, hospitals, and fire
stations will look into projects they can undertake, and use this
funding opportunity. "
Announced by the Chancellor in the Budget, this money is an
addition to £30m million announced last year for the scheme in
2008-20012 and will be available through Salix Finance. Loans will
be available for around 80 different energy efficiency
technologies, including building insulation, boiler and lighting
upgrades, improved cooling systems and IT energy efficiency improvements.
This support will play an important part in the build up to the
Carbon Reduction Commitment (CRC), which begins in April 2010. The
CRC is a mandatory scheme which targets carbon dioxide emissions
from large public and private sector organisations, which use more
than 6,000MWh of electricity per year. It will provide incentives
for these organisations to record and reduce their energy use, and
improve energy efficiency, saving an estimated 4 million tonnes of
CO2 a year by 2020.
Chief Executive Tom Delay said, "The Carbon Trust has helped
over 2,000 UK public sector organisations identify savings of £500
million in energy costs and carbon emissions of over 4.5 million
tonnes since 2001.
"Many organisations have already taken bold action on
climate change and we hope their example inspires many more in the
public sector to follow suit. Thanks to new funding from the
Government they now have the financial means to do so."
CEO of Salix Finance, Alastair Keir said: "Salix is very
pleased to be managing this programme. Salix is currently working
with 128 public sector bodies who are already saving over £3.5m a
year in energy spend. This new loan funding will enable us to
significantly increase the support we can provide to public sector
bodies to reduce their energy spend and their CO2 emissions. It
will not only enable other public sector bodies to benefit but
also allow our current clients to undertake larger projects and
achieve even greater savings."
Notes to Editors
1. The Scheme will provide loans to pay for
the installation of a wide range of energy efficiency measures in
public buildings. All public sector organisations are eligible to
apply. All loans will be repaid in 4 years with 8 equal repayments
made by direct debit. The repayments can be covered from the
energy savings achieved by the projects.
2. Salix Finance is an independent, publicly funded company, set
up in 2004 to accelerate public sector investment in energy
efficiency technologies through 'invest to save'
schemes. Salix has public funding from the Carbon Trust and is
working across the public sector with local authorities, NHS
foundation trusts, higher and further education institutions and
central Government. It is a not for profit company limited by
guarantee. You can find out more about the Salix scheme here http://www.salixfinance.co.uk/loans.html
3. The Carbon Trust is an independent company set up in 2001 by
Government in response to the threat of climate change, to
accelerate the move to a low carbon economy by working with
organisations to reduce carbon emissions and develop commercial
low carbon technologies.
4. Carbon Reduction Commitment - Public sector organisations that
consume at least 6,000MWh of electricity through half hourly
meters during the 2008 calendar year, or equivalent to an annual
electricity bill in the region of £500k, and have at least one
settled half-hourly meter, will qualify for the CRC. All central
government departments will be part of the CRC and many other
public sector bodies will also be covered. The scheme will begin
in April 2010, starting with a three year introductory phase.
Organisations will have to report their carbon emissions to the
Environment Agency and purchase allowances for every tonne of
carbon they produce. The first allowances will go on sale in 2011
and all the revenue from the sale of allowances will be recycled
back to participants six months after Government's allowance
sale, with a bonus/penalty element based on emissions performance
and their relative position in the scheme's performance
league table.
Department of Energy and Climate Change
7th Floor, 3
Whitehall Place, London, SW1A 2HD
Public enquiries +44 (0)300
060 4000
Textphone +44 (0)20 7215 6740 (for those with hearing impairment)