INFORM Finance
NEW FUND MARKET
A £2M fund has been opened,
providing grants of between
Economy holds back green tech
£100,000 and £500,000 to new
projects that can demonstrate The environmental sector is not cant barrier to environmental
significant carbon savings – recession-proof and new, vital innovation, because of a lack of
accelerating the Northwest environmental technologies are financial support.
region’s transition to a low- struggling to attract financial sup- “Banks and many equity
carbon economy. port to reach the marketplace, investors are becoming increas-
The Northwest Regional according to a new survey con- ingly risk averse and are not sup-
Development Agency ducted by the Environmental porting new technologies.
(NWDA) is inviting expressions Industries Commission’s Government must ensure these
of interest in The Carbon Environmental Investment funding sources are continually
Challenge Fund, which is tar- Network of 151 environmental accessible for environmental
geting organisations and busi- technology developers. innovators.”
nesses that show an innovative The survey found that the EIC chair Adrian Wilkes said
and replicable approach to environmental sector is vulnera- the government had a crucial role
energy efficiency, renewable ble to recessionary pressures. EIC chair Adrian Wilkes: Government to play in supporting companies.
energy, low-carbon transport Fifty-seven percent of respon-
must address funding gap
“Policy and legislation have
and construction. dents have been affected by the huge effects upon companies’
Steven Broomhead, chief economic downturn. But respondents articulated experiences in a recession, and
executive at the NWDA, said: Those respondents not affected that banks and many equity the survey shows a need for a
“As a powerhouse of innova- by the recession typically investors are becoming increas- strategic vision and a timetable
tion, the region has a sound described stability in the markets ingly risk averse and are not sup- of future environmental policy
knowledge base that will as a result of environmental legis- porting new technologies. While targets,” he said.
ensure businesses and the pub- lation or having secured long- established companies, with a “The global low-carbon and
lic sector are able to demon- term public-sector contracts. proven track record however, are environmental sector is worth an
strate leadership in dealing Respondents confirmed that a continuing healthy relationships estimated £3 trillion, employing
with climate change whilst funding gap exists, where finan- with their banks and finding them more than 25 million people. If
improving efficiency and cial support is lacking to commer- willing to lend, support for early the UK is to develop its market
therefore reducing costs and cialise environmental technolo- stage innovations is still lacking. share and influence within this
increasing green credentials.” gies. Government support is Overall, 69% of respondents sector, it is paramount that gov-
prevalent for research and devel- are adamant the government is ernment addresses the issues of
NEW FUND
opment grants – but not for the not doing enough to incentivise the funding gap for commerciali-
The European Investment next stage of development: com- the sector suggesting support sation and provides an opportu-
Bank’s (EIB) board of directors mercialisation of innovation. today is insufficient. nity for private investment to
has approved loans to The vast majority of respon- Commenting on these findings, support the development of new,
European-based automotive dents are heavily in favour of Michael Sippitt, joint chair of the vital environmental technologies
companies worth around equity investment – only 8% of EIC Environmental Investment to drive our economy through
€750M (£658M) to help design respondents would initially Network, said: “This survey the recession and mitigate and
and build cleaner vehicles with approach the government for unquestionably confirms a fund- overcome our impacts on the
lower emissions. financial support today. ing gap exists, creating a signifi- environment.”
Around €150M (£132M) has
been approved for a research
RENEWABLES
and development project of
DAF Trucks in Holland.
Billions in loans planned for eastern Europe
Ford will receive loans worth
€400M (£351M) for the con- Billions of euros are expected to was set up to support developing “Reducing energy wastage in
struction and operation of a be ploughed into eastern- economies and democracies from eastern Europe and developing
vehicle and engine plant in European renewable-energy central Europe to central Asia. reliable new supplies of sustain-
Craiova, Romania, the technical projects over the next two years as Many of the countries in the able energy remain core to the
rehabilitation of the existing loans from the European Bank for region still rely on cheap, EBRD’s future strategy,” said
plant as well as an additional Reconstruction and Development wasteful energy sources and EBRD president Thomas Mirow.
€200M (£176M) for the entire (EBRD) inspire confidence among remain the most energy-intensive “Energy efficiency helps
research and development private investors. economies in the world when increase competitiveness. It is a
related activities for the plant The EBRD plans to invest up comparing their carbon emis- key part of the transition process.”
carried out in Germany. to €5B (£4.4B) in the region’s sions to their GDP. Over the next three years, the
The EIB has also approved renewable-energy sector before The EBRD believes that, by EBRD will build on work done
€5.2B (£4.6B) in loans since last 2011, and estimates that this will stimulating renewable energy pro- so far and target additional types
December for European car attract further co-financing of duction in the region, it can help of investment, including energy
and truck makers, of which around €10B (£8.8B). these nations reduce their carbon efficiency in buildings and trans-
€3.5B (£3.1B) is provided under The bank is owned by more output while at the same time pro- port, biomass and investments in
the EIB’s European Clean than 60 national governments and viding a boost to their economies. climate change adaptation.
Transport Facility.
IN FACT GLOBAL TEMPERATURES HAVE RISEN 0.7˚C SINCE THE 1700s; 0.5˚C OF THIS HAPPENED IN THE PAST 100 YEARS
10 June 2009 ❘ Sustainable Business
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