changing cabon regime
Despite the opportunities for cutting carbon in Government
departments, it has proved very difficult to organise loan
funds for them. Administrative processes involving not far short
of smoke and mirrors now makes it possible for Salix Finance to
fund carbon reduction initiatives in government departments.
The technology has been installed over the
past two years across schools, colleges and
local council offices, as well as a number of
high profile private sector organisations.
Many of the systems out in the field have
been configured to show the financial sav-
ings or alternative use of the funds save along-
side the tonnes of CO
2
eliminated.
It becomes immediately obvious to anyone
who can influence energy consumption that
their actions will free up funds that may be re-
allocated to additional sports equipment, per- process, but the mores of public sector finance
haps – in the case of a school or college – or have appeared to prevent a transaction in
keeping open a local authority day care facil- which a Whitehall ministry is borrowing
ity that would otherwise have to be closed. money – albeit at a zero rate of interest – from
a private company.
How is change to be financed?
It is understood that an administrative proc-
ess involving not far short of smoke and mirrors
With such a powerful economic argument in now makes it possible for Salix Finance to
favour of carbon reduction, there only remains fund carbon reduction initiatives in govern-
the question of how any investment that needs ment departments.
to made in order to start achieving savings
can be funded.
It would probably prove very difficult for a
EAC looking for action
public sector body to find the cash to finance The Environmental Audit Committee’s reports
a £300,000 investment in new boilers, for ex- are intended to be taken seriously by Govern-
ample, or a combined heat and power (CHP) ment: the feedback which Whitehall delivers
installation. will be scrutinised for clear indications that
We have seen in another feature in this sec- action is being taken on criticisms raised.
tion of the magazine how Salix Finance bridges By August 2010, when the next annual re-
that spending gap by contributing interest-free port is published, Tim Yeo and his colleagues
loans into a ring-fenced fund. on the Committee hope to have seen best prac-
The magazine has examined how the body tice rolled out further across the government
manages schemes which benefit organisations estate.
as diverse as local authorities, schools, univer- Evidence of that good standing should there-
sities and NHS Foundation Trust hospitals. fore include more widespread use of remote
The total savings achieved by Salix since energy monitoring linked to graphic display
its creation in 2004 are running at 1.2 million systems as a way of involving rather more than Above: Frimley Park Hospital
tonnes of CO
2
and an estimated lifetime fi- hard-pressed energy managers. NHS Foundation Trust in Surrey
nancial saving of £210 million for the projects With the prospect of carbon-saving invest- has a carbon reduction ‘loan pot’ to
it has financed. ments funded by Salix loans as yet another which the Trust and Salix Finance
When the £51.5 million scheme which Salix route to secure quick but significant gains, the each contributed £50,000. The
Finance is managing on behalf of DECC has potential savings far exceed what could rea- initiatives taken achieved a saving
run its course at the end of the current finan- sonably be expected from nebulous carbon of about 288 tonnes of carbon by
cial year, those savings will be significantly trading schemes that do not take full effect the end of 2008: financial savings
greater. until 2011-2012. The EAC would do well to will continue at an annual rate of
Providing loans to central government re-assess its view that the CRC is wholly fit for around £24,454 for the economic
departments should be part of that funding purpose. § life of the investments.
The Informed Executive
27
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