The Green Bank could play a major role in encouraging investment in energy-efficient plant. But if there is no requirement for site equipment to be clean and energy efficient, the entire push on green projects will be undermined, Speedy says.
Andy Johnson, head of environment and sustainability at Speedy, said: “The Green Bank is a significant step towards the development of a low carbon economy. If it remains truly independent, and is not subject to interference from the Treasury, it could lead to significant change.
“It has already been announced that the bank will initially lend to projects in the wind, nuclear and waste sectors, but green projects will be undermined if the equipment used onsite is not energy efficient. More clarity regarding how far down the supply chain Government will expect low carbon technology to be used is needed.
“By, for example, stipulating onsite carbon targets for these projects, there is a real chance for government to use the Green Bank to drive more lasting and significant change within our sector. At the moment, a deterrent to investment in green technology is short-term payback. For many businesses, there is little short term incentive to change their hire purchasing decisions. Equipment such as PVAs, alternative heating and source pumps are all more cost efficient over the course of several years, but often the less environmentally efficient, cheaper option seems more sensible when facing squeezed margins.
“Increased numbers of green projects, and a requirement that low carbon technology is used will make selecting the environmentally efficient option an imperative for contractors tendering for these projects. The question is whether the Green Bank will in the future be used to support contractors in investing in the low-carbon equipment they need. If such a carrot were put in place, we could expect green technology to permeate the whole of the supply chain, further encouraging manufactures to produce more efficient equipment, and changing buyer behaviour.”
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