salix finance
Salix Finance has helped fund sufficient
carbon saving projects in the
public sector to claim a viable business model
We assess the role of this publicly-funded lending institution at a time when the number of new
projects that could not be undertaken without external finance is already growing rapidly
‘Financial Engineering’ has dark
Historians analysing the present decade mileage to be achieved by implement-
overtones; an implication of
will have to invent a different term spe- ing common-sense strategies for track-
cifically to describe financial machinery ing consumption and identifying where
sharp practices; of tax avoidance
which has been constructed to realise energy is being wasted: the Carbon Trust
schemes, perhaps, or of ‘special
more valid objectives; making funds and BERR agree that there is a potential
purpose vehicles’ designed to
available for strategically worthwhile 20% saving in that area.
attract favourable regulatory
projects that could not have been financed The principle is to cut energy waste,
in more conventional ways for legal or so that the savings achieved can deliver
treatment. An international
administrative reasons. an immediate impact on the financial
banking crisis tracing its roots to
Carbon reduction is probably the best bottom line and the size of an operation’s
securities backed by near
example of an objective that needs spe- carbon footprint.
worthless mortgage portfolios
cialist financial backing if it is to achieve But more enduring reductions in car-
the targets that have been established bon have an associated cost that has to
can have done little to raise the
for the UK through to 2020 and beyond. be financed. Replacing old-style light-
standing of the architects of
Climate change strategies have shifted ing in a building with a more energy ef-
those grand designs.
with increasing speed from the fringes ficient system, for example, might be
to take up whatever space is left in the shown to cut 32% from the annual light-
political mindset after the recession and ing budget, but how is the investment in
a sliding currency have been accounted the newer technology to be funded?
for. Their importance will continue to The private sector would normally turn
increase long after the economy has re- to its traditional banking partners or fund
turned to an even keel. such an investment through capital as-
set finance where applicable.
Grasping opportunities
The Carbon Trust has a role here, and
At one level, opportunities to reduce car-
has been keen to promote interest-free
bon emissions should be grasped with
loans to qualifying companies, easing
both hands: notwithstanding their impact
some of the pressure on funding.
on climate change, there are real eco-
For the public sector, however, the op-
nomic benefits from cutting consump-
tions are greatly reduced. A local author-
tion of energy sources which contribute
ity, university, government department
significantly to an organisation’s carbon
or foundation hospital trust might be for-
footprint. There is easy carbon reduction
tunate enough to have spare capital in
its annual budget.
24
24
The Informed Executive
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98