£550 million for green businesses from The Carbon Trust and Siemens

Siemens and the Carbon Trust have jointly launched a new scheme that provides businesses in the UK with the financing to purchase green equipment. This is worth nearly £550m over 3 years. This new deal will give a major boost to UK green growth and will also assist investment in what is hailed as the key to the economic recovery- ‘Low Carbon Economy’.

This new scheme is the first to be totally dedicated to low carbon financing, and gives businesses in the UK the opportunity to invest in energy efficient and cost effective equipment. Applications for these business loans for green growth are being accepted now. Under an agreement between the two companies, Siemens Financial Services are providing the finances whilst the Carbon Trust are bringing their expertise.

Together they will assess each application, and look at the savings that will be made in cost, carbon and energy. This allows the financing to effectively pay for itself, which eliminates any net costs to the customer.

Tom Delay, chief executive of the Carbon Trust, commented:
“Driving green growth in the UK is key to our economic recovery. A missing ingredient at present is access to affordable finance to enable business to make green investments.  This new major finance facility will improve business competitiveness, cut carbon and boost green growth.”

James Gearey, CEO from Siemens Financial Services commented:
“We are delighted to be working with the Carbon Trust, their values very much match our own.  Siemens has been reporting the performance of its environmental portfolio since 2002, not just the commercial performance, but also the hundreds of millions of tonnes of carbon emission reduction that has been delivered through Siemens technology.

Siemens Financial Services has extensive experience of asset financing and lending to UK business and is particularly successful in the SME sector.  This background combined with our ready access to funding means we are well placed to support the scheme and deliver the associated benefits to its future customers.”

Miles Templeman, the Director General of the Institute of Directors, said:
“In today’s high energy cost environment improving energy efficiency is a must for all businesses. The new Energy Efficiency Finance scheme could play a significant role in stimulating innovative solutions.”

John Sauven, Executive Director of Greenpeace, welcomed the partnership:
“This green finance deal is exactly the sort of initiative that we need to see happening more frequently in the future. A green growth strategy can only work if it is backed by green finance. Deals like this, alongside the development of a green infrastructure bank, could be a tipping point that the UK economy needs to get out of the current doldrums.”

The Carbon Trust and Siemens Financial Services have also agreed to finance a new commercial venture that will increase the take up of energy efficiency projects. This venture will offer procurement support to businesses wishing to purchase energy efficiency equipment at scale from a network of accredited suppliers and will be launched later this year.