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Businesses struggling to finance energy-efficient investments reveals new analysis from Energy Efficiency Financing Scheme


London, UK (5 January, 2012) - New analysis from the Energy Efficiency Financing Scheme - has revealed that some 400,000 businesses throughout England would struggle to raise standard bank loans for energy efficient investments. The Energy Efficiency Financing Scheme ( is a financing scheme for green equipment for organisations of all sizes, delivered by the Carbon Trust and its partner Siemens Financial Services.

The analysis reveals the number of companies in each major town and city that are likely to face difficulties raising bank loans for green equipment investments which can significantly reduce businesses' energy costs and carbon emissions. Evidence from the Bank of England predicts that tight credit conditions, especially for smaller businesses, are likely to persist in 2012[1]. 

In England, around 400,000 companies (38% of employers) are expected to find it difficult to raise bank loans to invest in energy efficiency that would save energy costs and could also increase productivity. 

Myles McCarthy, managing director at Carbon Trust Implementation Services, commented: "Our analysis shows that there is a huge market potential for energy-efficient equipment investment over the next three years, amounting to almost £9bn across the country (e.g. £768m in London, £798m in North East, £580m in South West). The large number of inquiries in the Energy Efficiency Financing Scheme in the first few months confirms the significant appetite from business for investment in this area."

"In the current credit squeeze, however, a major problem for firms has been access to affordable finance to enable business to make those green investments. That is why we have put in place a major new financing facility that makes finance more accessible and affordable for companies. The new facility – with finance provided by Siemens - matches monthly payments to real monthly energy cost savings, which means that in many cases firms are cash neutral or cash positive from day one. These investments allow organisations to gain access to new equipment that is more productive, reduces waste and lowers energy costs.

Drawing on Siemens' financing expertise, the current analysis identifies businesses who would struggle to raise an affordable bank loan because of their credit profile[2]. To help these companies raise finance for energy-efficient investments, the Energy Efficiency Financing Scheme covers such technologies as low energy lighting, energy-efficient motors, energy efficient air conditioning or biomass heating. Any business is able to apply for new green growth finance from the scheme, which is designed to match monthly payments with the equivalent savings from lower energy consumption. The Carbon Trust applies its experience and expertise in carbon saving from energy-efficient technologies to provide a reliable and trusted assessment of the carbon, energy and cost savings of any application for finance.  Siemens Financial Services Ltd. in the UK (SFS UK) provides the financial backing and manages the provision of funding. 

Any business wishing to apply to the scheme for energy-efficient or renewable energy equipment finance, or any equipment supplier wishing to offer the scheme to its customers, should visit: 

[1] Bank of England, Credit Conditions Survey, 2011 Q4

[2] Based on an examination of the credit profile of 780,000 UK employers, the analysis identifies companies that present a credit profile that is neither so adverse that they would not be able to raise any form of finance, nor so positive that they would be able to raise affordable loans even in the current economic climate. 

For more information about the Energy Efficiency Financing Scheme, contact:
Emma Warren
Tel : +44 (0)207 402 0510

For more information about the Carbon Trust, contact:
Carbon Trust Press Office
Press Office
Tel: 00 44 (0) 207 544 3100