The UK and China have got together to form a joint venture to open up markets for innovative UK low carbon businesses.

The new joint venture goes by the name of the China-UK Low Carbon Venture Capital Company. It’s a £10 million joint venture between the Carbon Trust and the China Energy Conservation Investment Corporation (CECIC). It will support the development and deployment of low carbon technologies in China.

UK Government supremo Lord Mandelson oversaw the creation of the new venture along with Chairman Zhang Ping of the National Development and Reform Commission of the People’s Republic of China. The initiative was welcomed by the Institute of Directors and Greenpeace.

It is hoped that the new venture will help British business wanting to export low carbon technologies into China. It will accelerate low carbon innovation and technology transfer in China, opening new markets for innovative, British clean technology companies and, they maintain, reduce global carbon emissions. Two strategies will be in play, the first to incubate new and emerging low carbon technologies and introduce selected low carbon businesses from the UK to China; and, to provide financial investment for UK and Chinese low carbon businesses in China.

As well as the initial £10 million investment funded by the Carbon Trust and the China Energy Conservation Investment Corporation hope to use their influence to leverage money via third party funding from the public and private sectors.

Lord Mandelson, Secretary of State for Business, Innovation and Skills, said:
“As we enter a new era of innovation driven by the rapidly expanding low carbon economy, we must ensure that UK companies benefit and develop overseas markets for their commercial propositions. This new joint venture is a win win, as it helps UK companies access the important Chinese market but also helps China in its move to develop new clean technologies.”

Tom Delay, Chief Executive of the Carbon Trust, said:
“This is great news for the UK as China represents an exciting new market for clean technology businesses. The new venture will act as an important bridge for UK companies entering the Chinese low carbon marketplace. Our approach to low carbon innovation, coupled with CECIC’s expertise in clean energy in China, will open up new exciting opportunities for UK companies at the cutting edge of carbon reduction.

“We want this joint venture to become a successful example of an international collaboration to accelerate low carbon innovation and technology transfer and a framework for future international agreements.”

Mr. Wang Xiaokang, the President of CECIC, said:
“As the only national investment corporation specialised in the fields of energy conservation, emission reduction and environmental protection in China, China Energy Conservation Investment Corporation plays a unique role without any substitute.

“China Energy Conservation Investment Corporation and the Carbon Trust are both fully committed to tackling climate change, improving energy efficiency and promoting low carbon innovation in our respective countries. We share the same important mission of pushing forward energy conservation and emission reduction. We look forward to the new achievements brought about by the new joint venture.”

Miles Templeman, Director General of the Institute of Directors, said:
“It is important that UK businesses are helped to benefit from the rapidly growing demand for low carbon technologies in China and in other emerging market economies. The Carbon Trust’s new joint venture is a good start in opening up the key Chinese market to UK companies.”

John Sauven, Executive Director of Greenpeace, said
“China will need to substantially increase its spending on curbing greenhouse gases in the next 20 years. All economic studies have found that early action on emissions is cheapest, and that deferring curbs to emissions leads to far greater costs in the medium term. But China will need help and financial assistance to overcome a lack of intellectual property rights and the research capacity to develop new technologies. The opportunities for UK business with initiatives such as that being developed by the Carbon Trust will be enormous.”

Guest Article by Neil Camp

It can only be hoped that when business dragon Theo Paphitis snorts out a few flames, his emissions are low in carbon, because he has joined forces with the Carbon Trust to help promote their power-guzzling equipment scrappage scheme.

The Carbon Trust maintain that British businesses are being forced to “make do and mend” with old, inefficient equipment, as over half don’t have the cash to upgrade it. And furthermore, some 60% of small and medium-sized businesses wait until their equipment breaks down completely before replacing it.

The problem, say the Carbon Trust, is costing businesses £3.3bn a year in wasted energy. This figure was revealed in a survey of 1,500 small and medium-sized businesses at the launch, by Dragon’s Den star Theo Paphitis, of the Carbon Trust’s Big Business Refit campaign.

Theo Paphitis said:
“The Big Business Refit calls on all UK businesses to scour their premises for old equipment, from air conditioning, to fridges, compressors to factory machinery. With interest-free funding available to replace equipment, leading to average energy savings of 15%, and no security required, it’s an unbelievable deal.”

The Carbon Trust’s aim is to help businesses to scrap their old power-guzzling equipment and replace it with new equipment that’s more efficient and cheaper to run. The campaign provides expert guidance, plus financial support in the form of £100m in interest free funding, which can be paid back through the energy savings the new equipment delivers.

Running until March, 2010, The Big Business Refit offers advice on identifying old equipment, and guidance on suitable replacements in clinics in UK cities, including London, Birmingham, Manchester and Belfast. Businesses can get expert advice, a free energy saving assessment, or apply for interest free funding by calling 01865 885879, or visiting http://www.bigbusinessrefit.co.uk.

Some of the detailed results from the Carbon Trust reveal that some 57% of the businesses questioned have resorted to staff cuts to save cash; some 46% are unaware that they can cut energy costs by replacing old equipment; and, some 41% have accepted higher energy bills as a fixed cost, preferable to paying the upfront cost of replacing old equipment.

The Federation of Small Businesses is also right behind the initiative, having pledged their support.

David Caro, FSB Energy & Environment Chairman, said:
“Due to their size, small businesses are in a unique position to adopt energy efficiency measures more easily and quickly than their larger counterparts. However, small business owners are often limited by time constraints and are not always aware of where and how to access advice on how to go green. The support of the Carbon Trust can help small businesses play their part in being energy efficient and cutting costs, saving money and boosting their own enterprise.”

Guest Article by Neil Camp

Two key environmental agencies have been taken to task for not appreciating the damage done by hard water.

Lime scale is a major factor in increased energy consumption says the Environmental Treatment Concepts (ETC), which is a member of three pivotal organisations: Green Building Council, British Water and the Environmental Industries Commission.

The ETC has pointed an accusatory finger at The Energy Savings Trust and The Carbon Trust for not recognising the negative impact of lime scale.

Although, says the ETC, The Carbon Trust does acknowledge that 1mm of lime scale will cause a near 10% increase in energy consumption as regards low temperature hot water boilers. But ETC say that there is no real guidance on both the agencies’ websites as to how to cope with the problem.

ETC claims that the agencies’ solution is to allow lime scale to develop and then use chemical agents to remove it. This they state is the wrong approach and they highlight the modern, non-chemical ways that lime scale can be prevented from forming in the first place.

They also say that the chemical de-scaling process can lead to the premature failure of sanitary-ware, water-fed equipment and appliances.

Guest Article by Neil Camp