Press Release - The Carbon Trust: accelerating the move to a
low carbon economy
22 November 2007
The Carbon Trust helped UK businesses and public sector
organisations reduce their carbon dioxide emissions by up to an
estimated two million tonnes in 2006-07 according to a report out
today by the National Audit Office. And its support of emerging low
carbon technologies could lead to further sizeable reductions in
the future.
The Carbon Trust, set up in 2001, is a private company with a
remit to cover the UK. It used £103.2 million in public money from
central government departments and the devolved administrations in
2006-2007. Today’s report looked at the cost-effectiveness of the
advice given to businesses and public sector organisations by the
Carbon Trust and its programme to encourage the development of low
carbon technologies.
The report found that the Carbon Trust is likely to meet the
expectation set out in the Climate Change Programme 2006 that its
actions will result in an annual reduction in carbon dioxide
emissions of 4.4 million tonnes by 2010 on levels in 1990. The
direct monetary benefit to organisations that the Carbon Trust
worked with in 2006-07 is estimated to be between £410 million and
£655 million over the life time of the carbon savings; more than
double the costs the organisations incurred in taking up Carbon
Trust recommendations. On this basis the Carbon Trust’s advice to
business has proved value for money and its Innovation Programme
appears to be on course to do likewise.
The report also found that the Carbon Trust has built a strong
brand image in the UK. Some 53 per cent of businesses in 2006 were
spontaneously aware of the Carbon Trust and its role in helping
reduce carbon emissions. Over 80 per cent of the organisations that
worked with the Trust to reduce their carbon dioxide emissions were
satisfied with the service they received.
However, the report found that organisations could achieve
greater reductions in carbon emissions, as less than 40 per cent of
the carbon savings identified by the Carbon Trust between 2003 and
2006 have so far been implemented.
Some of the Carbon Trust’s recommendations are deliberately
challenging in order to encourage organisations to undertake more
ambitious energy saving initiatives. But the NAO found that 60 per
cent of organisations had implemented fewer than half of the
recommendations made. The main barriers were competing investment
priorities and difficulties in some organisations securing senior
management commitment. The report recommends the development and
expansion of the Carbon Trust’s Energy Efficiency Accreditation
Scheme so organisations can demonstrate that they are taking
climate change seriously.
Only 12 per cent of large businesses with annual energy bills
over £50,000 have worked with the Carbon Trust to reduce their
carbon dioxide emissions. Working with more organisations and
increased implementation of good practices could generate much
greater reductions in carbon dioxide emissions. However, any large
change in take up without a corresponding increase in government
funding depends upon companies being willing to pay for advice. The
NAO recommends that the Carbon Trust should explore the potential
of a franchise model enabling accredited third parties to offer
organisations paid-for advice.
The Carbon Trust has developed strong expertise in developing
low carbon technologies which it estimates could lead to annual
savings of between 13.7 and 20.7 million tonnes of carbon dioxide
emissions by 2050. Its support of low carbon technologies has
raised around £2 of private sector investment for every £1 it has
committed to its Innovation Programme, and around £10 for every £1
it has committed to its venture capital investments.
The Carbon Trust’s Research and Technology Accelerators appear
to be well designed to accelerate the development of commercially
viable low carbon technologies. However, in order to further
accelerate the development of new technologies which could reduce
carbon dioxide, the NAO recommends it needs to build stronger links
with overseas organisations to collate better information on
international progress in developing such technologies.
Sir John Bourn, head of the National Audit Office, said
today:
“Climate change presents very serious global risks. The
Carbon Trust has done a good job at persuading businesses and
public sector organisations to start tackling the problem and its
work to date has proved value for money. Its achievement in
reducing carbon dioxide emissions in 2006-07 by up to two million
tonnes is commendable, but it is a small one in view of the scale
of the challenge ahead. The Carbon Trust needs to build on its good
work and extend its drive to encourage business leaders to review
the carbon footprint of their organisation and to take decisive
action to reduce carbon dioxide emissions.”
Notes for Editors:
- The Carbon Trust uses accredited energy efficiency consultants
to work with organisations with energy bills of more than £50,000 a
year. The services provided include reports with costed
recommendations on how the recipient organisations might reduce
their carbon dioxide emissions and energy consumption, services
supporting the implementation of recommendations, and technical
advice on the design and implementation of more complex
projects.
- Press notices and reports are available from the date of
publication on the NAO website, which is at www.nao.org.uk. Hard
copies can be obtained from The Stationery Office on 0845 702
3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
head of the National Audit Office which employs some 850 staff. He
and the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 52/07
All enquiries to Donna Watson, NAO Press Office:
Tel: 020 7798 7038
Mobile: 07917 555 388