A major new deal between the Carbon Trust and Siemens, will boost green growth and unlock business investment in the low carbon economy in the UK. According to a deal announced in Germany on March, 4, 2011, Carbon Trust and Siemens have agreed to develop a financing program for green technology and equipment.
The new low carbon finance scheme will enable UK businesses to invest in cost effective energy efficiency equipment or other low carbon technologies. The joint venture will be worth up to £550 million over the next three years, but the financing is expected to pay for itself in cost savings.
The news prompted John Sauven, Executive Director of Greenpeace, to say: “This green finance deal is exactly the sort of initiative that we need to see happening more frequently in the future. A green growth strategy can only work if it is backed by green finance. Deals like this, alongside the development of a green infrastructure bank, could be a tipping point that the UK economy needs to get out of the current doldrums.”
Siemens Financial Services Ltd. in the UK (SFS UK) will provide the financial backing and manage the provision of funding and the Carbon Trust will use its expertise in carbon reduction. The Carbon Trust will also assess the carbon, energy and cost savings of the energy efficiency applications.
James Gearey, CEO from Siemens Financial Services Ltd. UK commented: “We are delighted to be working with the Carbon Trust, their values very much match our own. Siemens has been reporting the performance of its environmental portfolio since 2002, not just the commercial performance, but also the hundreds of millions of tonnes of carbon emission reduction that has been delivered through Siemens technology. Siemens Financial Services has extensive experience of asset financing and lending to UK business and is particularly successful in the SME sector. This background combined with our ready access to funding means we are well placed to support the scheme and deliver the associated benefits to its future customers.”
This venture will increase the number of energy efficiency projects by offering procurement support to businesses wishing to purchase energy efficiency equipment at scale from a network of accredited suppliers.
For more information see Siemen’s press release.
© 2011, Richard Matthews. All rights reserved.