Carbon Trust 'must help small firms'

The Carbon Trust needs to do more to persuade small businesses that improving energy efficiency makes commercial sense, MPs have said.

In a report on the effectiveness of The Carbon Trust, a committee of MPs found the trust could be doing more to cut carbon emissions from businesses, especially small ones.

Edward Leigh MP, chairman of the Committee of Public Accounts, said the trust's contribution to reducing annual carbon dioxide emissions is "pretty small beer".

He added: "Now is the time for the Carbon Trust to get out there, work with businesses and other bodies and persuade them to cut their emissions.

"I recognise the success of the Carbon Trust in encouraging private sector investment in low carbon technologies.

"But a lot of businesses, especially smaller ones, are yet to be convinced that improving their energy efficiency makes commercial sense. The Carbon Trust must provide evidence to the contrary and also aim to assist more eligible small businesses under its interest free loan incentive scheme," he said on the publication of the report.

The Carbon Trust can provide advice to firms wanting to cut their emissions and can also provide interest-free loans for equipment that could help companies achieve this goal.

However, Mr Leigh said that this could bring problems as these initiatives could substantially benefit the businesses as well as the environment.

"It seems obvious that it would bring big benefits to approach the businesses and public sector bodies pumping out the higher levels of emissions," Mr Leigh said.

"At present, European State Aid rules can preclude such targeting of the worst offenders. If this continues to be a problem, it is down to Defra to take it up with the European Commission."

The Carbon Trust, established in 2001 to help businesses and public sector organisations in the UK reduce their carbon dioxide emissions, receives most of its funding from the government.