Energy Saving News
Sticks not Carrots for SME Energy Efficiency
"I don't think incentives work, sticks do." so said Bob Wigley, chairman of the UK government’s Green Investment Bank Commission.
Wigley encouraged the UK government to show they have “the guts” by imposing financial penalties on businesses who fail to become energy efficiency and accept their environmental responsibilities.
Wigley, speaking yesterday at a meeting discussing the commission's proposals for the new Green bank, argued that during the last 10 years the UK's climate change policy consisted of a hodge-podge of grants and advice, where Wigley’s advice is for "large-scale systems of sticks, grants, loans and advice.".
Wigley, former chairman of Merrill Lynch Europe, added:
"Typically, SMEs' (small and medium enterprises) energy costs are three per cent of their total costs, while business rates are 10 per cent,"
He argues that as a result many UK businesses have ignored the potential of energy efficiency savings.
"The government could say that 'if you do not take energy efficiency measures we will increase your business rates, but to help you there will be a national loan scheme and professional advice'."
Wigley commented that research from the UK’s Carbon Trust had reveled that simple cost-effective energy efficiency measures could cut SME’s energy bills by £1bn a year, adding that a heavy hand is necessary to force SMEs take energy saving action.
"The question is if the government has the guts to do it, because I don't think incentives work – sticks do," Wigley said.
Both Conservatives and Liberal Democrats, who make up the coalition government, state they are committed to increase green taxes with those in the know saying that environmental taxation could be on the political agenda by the autumn.
Thursday 1st July 2010
