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Energy managers can create cost and energy savings with the Energy Technology List

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By May Laghzaoui, ETL Project Coordinator, Energy Technology List

Energy managers and procurement professionals can save money and energy through investing in energy efficient products. However, sourcing energy efficient products can be often be time consuming and confusing with a bombardment of conflicting marketing messages. 

The solution lies with the Energy Technology List (ETL). Backed by government, it is a searchable database of energy efficient technologies in a variety of categories. The products featured on the list are in approximately the top 25 per cent for energy efficiency and have been independently verified, giving customers comfort in the knowledge they are purchasing high performing products.

Technology categories featured on the ETL include: automatic monitoring and targeting (aM&T) equipment; boiler equipment; combined heat and power (CHP); heat pumps; lighting; motors and drives; refrigeration equipment; and waste heat to electricity conversion equipment.

With rising energy costs and increasingly stringent standards and environmental measures, energy managers are under pressure to reduce costs and meet these targets. Investing in ETL-listed products can further aid these pressures, as it might entitle a business to accelerated tax relief through the Enhanced Capital Allowance (ECA). The ECA can serve as a cash boost for businesses looking to invest in high-performing products. They can then avoid the false economy of cheaper products that consume greater levels of energy and incur long-term energy costs.

In order to qualify for the ECA, businesses must pay corporation tax and purchase products listed on the ETL at the time of purchase. The ETL can also be paired with other forms of accelerated tax relief, such as the Annual Investment Allowance (AIA). The AIA limit has been raised to £1 million for two years from January 2019, enabling businesses investing in new plant and machinery to be able to claim through their AIA instead.

The ETL also complements other government energy efficiency policies, such as the Energy Savings Opportunity Scheme (ESOS) requiring large businesses to report on cost-effective energy saving recommendations, making the ETL a useful tool for those who want to implement recommendations.

Energy savings resulting from purchases of ETL-qualifying equipment have resulted in the sizeable abatement of carbon emissions in the UK – equivalent to approximately 88 million tonnes of CO2since 2001. In addition, it is estimated that the ECA scheme has been used by UK businesses to capture around £100 million a year in accelerated tax relief. This is a key time to factor the ETL and ECA into any procurement processes as the ECA scheme is coming to a close in April 2020.

With increasing awareness and concern around climate change issues, organisations have the opportunity to reap the reputational and economic benefits from reducing their environmental impact. The ETL, if integrated into the procurement process, can be a critical tool for businesses and public sector looking to achieve these savings.

Search for eligible products on the ETL here:

Image by Michael Schwarzenberger from Pixabay

The Carbon Trust unveils framework to help businesses transition to net-zero emissions

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The Carbon Trust has launched a service that it says will help businesses transition to a net zero economy by assessing and developing their strategic response to climate change.

The Carbon Trust Climate Leadership Framework helps senior management understand how their company is currently performing on climate change, identifies the opportunities for measureable improvements via a low carbon roadmap and guides their strategic planning.

The Carbon Trust has identified a growing demand from companies for expert evaluation and guidance on their overall strategic approach to climate change.

To meet this demand and ensure that companies are equipped to take comprehensive action towards net zero, the organisations says it has spent over a year developing this new framework.  

Hugh Jones, Managing Director – Business Services, the Carbon Trust said: “Organisations are more aware than ever of the need for bold action on climate change.  The recent publication of the Committee on Climate Change’s Net Zero report and heightened public and political awareness of climate change issues have highlighted the need to transition to sustainable, low carbon economies across the world. This framework enables businesses to play their full part and ultimately become climate leaders.”

The framework has been tested and refined in partnership with five businesses over the past six months to ensure it provides a straightforward process to produce robust, relevant and actionable insights for company leaders.

Using the framework, the Carbon Trust works with each client to assess its own operations, its upstream and downstream value chain, and the avoided emissions brought about by the use of its products or services.

Within each of these three perspectives, the following activities are examined:

  • Target setting: is the company setting sufficiently ambitious targets in the right areas?
  • Implementation: does the company have an implementation plan that clearly lays out the actions it will take to achieve its targets?
  • Contextual analysis: does the business fully understand the climate change issues it is facing, including the opportunities and risks it faces in the transition to a net zero economy?
  • Innovation: is there a structured approach to developing and delivering the changes necessary to transform the company beyond its current short to medium term target horizon so it can succeed in a net zero carbon economy?
  • Influencing: is the business engaging key stakeholders in initiatives to address the barriers to achieving further emissions reductions beyond its current short to medium term target horizon?

Once its assessment is completed, each company agrees and receives a scorecard showing its current state of progress and a bespoke roadmap containing practical next steps in order to make progress towards becoming a climate leader and achieving net zero emissions.

Jones added: “Businesses may already be addressing some of their climate change impacts but this framework helps evaluate their overall performance, strategically positions existing schemes and initiatives for them and, crucially, provides a tailored company-wide roadmap for improvement. 

Experience from working with companies on its development has shown that it is extremely effective at facilitating company-wide understanding and ownership of climate change impacts and stimulating long term strategic planning.”

The Climate Leadership Framework has already been taken up by five companies working with the Carbon Trust – Pearson, Quorn Foods, SGN, Sky and Marshalls.

Image by Foto-Rabe from Pixabay