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Finance is key to low-carbon economy
Following last week’s Budget, which contained measures designed to increase the speed and scale of investment in low carbon energy projects, finance companies, green businesses and energy suppliers have met to discuss the emerging role of asset finance in achieving a low carbon economy.
Finance is the key to unlocking a low-carbon economy, and the conference, hosted by the Finance & Leasing Association on Wednesday (30th), considered asset finance in particular as a funding option for green technology. Asset finance is increasingly used to help businesses fund everything from the replacement of conventional business equipment to large -scale renewable energy infrastructure. The event also examined the role of utility companies and the Government in helping asset finance to make a low-carbon economy a reality.
The keynote speaker was Lord Redesdale, Liberal Democrat former energy frontbench spokesman. He said:
“It is imperative that as a nation we reduce our carbon footprint. One way of achieving this is to replace old equipment with newer, more energy efficient models. I am encouraged that the finance community is engaging with the energy industry to understand each others’ challenges and develop leasing schemes for the range of low carbon technology that is coming to market.”
The event took place ahead of a major project launch next week by the Carbon Trust in partnership with Siemens to deliver a new low carbon finance scheme encompassing asset finance.
Julian Rose, Head of Asset Finance at the FLA, said:
"The last year saw low-carbon leasing progress from vision to reality, as leasing was included in the Carbon Trust’s loan scheme, and deals started, to be written for renewable energy equipment.
"Asset Finance is the third most common source of finance for businesses, after bank overdrafts and loans. In last week’s Budget the Chancellor reinforced the Government’s commitment to a low carbon economy. By bringing together the major delivery agents we can begin to develop ideas for financing the green revolution that is critical to the UK’s economic future."
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Note to editors:
In 2010 FLA members provided £69.8 billion of new finance to UK businesses and households. £19.6 billion of finance was provided to businesses and the public sector, representing around a quarter of all fixed capital investment (excluding real property and own-account software) in the UK last year. £50.2 billion was in the form of consumer credit, representing a third of all unsecured lending in the UK. And £18.4 billion supported the purchase of more than half of private new car registrations in the UK.
For further media information, please contact:
Russell Hamblin-Boone, FLA
T: 020 7420 9656 E: russell.hamblin-boone@fla.org.uk M: 07810 374110
Helen Saxon, FLA
T: 020 7420 9664 E: helen.saxon@fla.org.uk M: 07918 766 993