Businesses can still apply for interest-free, unsecured loans of between £3,000 and £200,000, but with the new requirement that one tonne of CO2 is saved for each £1,000 borrowed. This has been reduced from the previous threshold of 1.5 tonnes of CO2.
The change reflects the considerable progress the nation has made in taking action on climate change in the 15 years since June 2003, when the first loans were made under the scheme.
The carbon emissions from each unit of grid electricity in the UK almost halved between 2012 and 2016, and continued to drop steeply in 2017. As such, many energy saving projects now result in lower emissions savings than had previously been the case.
Over £19 million of interest-free loans have been made to businesses in Wales through the Carbon Trust’s interest free loans scheme to date, supporting almost 700 projects and saving businesses over £9 million a year on their energy costs.
David Reilly, Director of Cities & Regions at the Carbon Trust, said:
“Over the past 15 years we have helped hundreds of Welsh businesses to save money on their energy bills and become more resource efficient, at the same time as helping to achieve national ambitions on sustainable development and creating a better Wales for future generations. By making these changes we want to help hundreds more businesses to do the same.”
For an SME to be eligible for an interest-free loan from the Carbon Trust they must replace existing equipment, resulting in savings being made on grid electricity and on-site fossil fuel use. A wide variety of projects are acceptable, including: building improvements such as insulation, heating and lighting; upgrading industrial process technologies; and investing in renewable energy.
Our interest-free loans are designed such that in most cases the monthly energy cost savings to your business should exceed the monthly repayments. Loans are repayable over 1 to 4 years in line with expected project payback periods. Multiple loans are available up to the maximum loan amount.
The Carbon Trust is authorised and regulated by the Financial Conduct Authority for consumer credit.
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About the Carbon Trust
Established in 2001, the Carbon Trust works with businesses, governments and institutions around the world, helping them contribute to – and benefit from – a more sustainable future through carbon reduction, resource efficient strategies, and commercialising low carbon businesses, systems and technologies.
We work with corporates and governments, helping them to align their strategies with climate science and meet the goals of the Paris Agreement.
We provide expert advice and assurance, giving investors and financial institutions the confidence that green finance will have genuinely green outcomes.
We provide independent insight and support the development low carbon technologies and solutions, building the foundations for the energy system of the future.
Headquartered in London, we have a global team of over 30 nationalities based across five continents.