Acting on Stern environmental warning

Acting on Stern environmental warning makes commercial sense says Utility Auditing.

makes commercial sense says Utility Auditing.

The recently published Stern Review, compiled by economist Sir Nicholas Stern for the UK government, warns the world to act now on climate change or face devastating economic consequences.

Its main conclusions are that one percent of global GDP needs to be invested in order to mitigate the effects of climate change, warning that failure to do so could risk a recession worth up to twenty percent of global GDP.

The report suggests that climate change threatens to be the greatest and widest-ranging market failure ever seen, and it provides prescriptions including environmental taxes to minimise the economic and social challenges faced.

While both business and domestic consumers worldwide must respond to this global challenge, UK companies can play their part in helping the environment and help themselves, says Utility Auditing (UAL).

Government estimates show that UK business is wasting around 20 per cent of its energy consumption, with the average company losing GBP7,000 per year in this way and causing unnecessary environmental damage.

Yet every business can take simple measures to stem such wastage to save both money and protect the environment.

Help and advice is available to businesses of all sizes from UAL.

Companies with an annual energy spend of more than GBP50,000 can also benefit from free on-site Carbon Trust surveys.

The survey begins with a visit to a company's premises by a qualified UAL energy auditor, who will carry out a comprehensive "walk through" of the site in order to pinpoint unnecessary, poorly controlled, inefficient or inappropriate energy use.

Energy usage is also benchmarked against consumption figures by similar businesses.

The next stage is to present fully costed solutions for improving efficiency, including many simple measures which require no capital outlay.

Project management and training can then be provided, if necessary, to help businesses implement the energy saving recommendations.

UAL can help businesses to gain access to interest free Carbon Trust loans of up to GBP100,000 and claim Enhanced Capital Allowances to help implement energy efficiency measures.

Through its parent group, ENER-G plc, UAL can also provide Building Energy Management and Combined Heat and Power solutions to make a hard hitting contribution to energy efficiency programmes.

UAL works in partnership with more than 60 accredited Chambers of Commerce and membership organisations.

The company buys GBP175 million worth of energy on behalf of UK business each year and can use its national purchasing power and expertise to negotiate the best UK contract rates on gas and electricity.

STERN REVIEW - KEY FEATURES.

Here are the key points of the review written by Sir Nicholas Stern, the former chief economist of the World Bank.

* Carbon emissions have already increased global temperatures by half a degree Celsius.

* If no action is taken to reduce emissions, there more than a 75% chance of global temperatures rising between two and three degrees Celsius over the next 50 years.

* Extreme weather could reduce global gross product (GDP) by up to 1%.

* If temperatures rise by five degrees Celsius, up 10% of global output could be lost and the worst case scenario could see global consumption per head would fall 20%.

* To contain the problem, emissions would need to stabilise in the next 20 years and fall between 1% and 3% after that.

This would cost 1% of GDP.

* Proposals to address climate change, include: consumer demand for heavily polluting goods and services; making global energy supply more efficient; preventing further deforestation and promoting cleaner energy and transport technology.

Specific recommendations are to: create global market for carbon pricing.

Extend the European Emissions Trading Scheme (EETS) globally, bringing in countries such as the US, India and China; legislate to enshrine carbon reduction targets and create a new independent body to monitor progress; create a new commission to spearhead British company investment in green technology; work with the World Bank and other financial institutions to create a $20bn fund to help poor countries adjust to climate change challenges.

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