As of July 2020, the UK, France, Germany, Denmark, Hungary and New Zealand all passed laws committing them to achieving a net-zero economy by 2050 or earlier. The COVID-19 pandemic has further underlined the importance of making this transition. In response, countries around the world are bringing forward their green recovery packages. Following this lead, a growing number of companies have announced similar goals.
Delivering on a low, or even net-zero, emissions along with other environmental goals, such as reducing reliance on single-use plastics, requires companies to innovate in both products and services as well as expansion into the use of technology.
The topic of being sustainable, eco-friendly and even carbon neutral has found its way onto every board’s agenda.
An increasing number of UK companies are generating commercial revenues from products and services that contribute to positive environmental outcomes. Renewable energy is helping to mitigate climate change, recycling technologies are reducing waste, zero emission vehicles are contributing to improved air quality. But all of these things come at a cost.
The Green Economy is diverse. Companies and investment vehicles of all sizes, in all geographies and across every industry are part of it.
With business owners increasingly seeking to improve their carbon footprint they are reluctant to deploy capital and invest into these areas. Funding has to come from somewhere. Whilst some are reinvesting profits, there are many finance companies who have been targeted to offer renewables finance and initiatives to help businesses achieve their goals.
Ian Hamilton, Renewables Finance expert at CMF Capital, tells us “There are a range of incentives and grants being offered by the UK government, coupled with a whole host of funding options for businesses looking to achieve green credentials. Many just aren’t aware of what’s available. Yet they are counting on their investment returns being driven by trends such as changing consumer behaviour, evolving technologies and balancing them with the financial risks relating to changing growth models.”
“They are, in turn, using this opportunity to raise the profile of their company, showcasing how they are contributing to the green economy. It’s therefore becoming more of an attractive proposition for climate aware investors who are increasingly wanting to be seen to be more green.”
CMF Capital can assist in the whole process of reducing the carbon footprint for UK industries. We carry out surveys on the existing premises and make recommendations on the renewable technologies that will reduce the carbon footprint whilst saving the business money against its existing running costs. The implementation of the recommendations is provided by 100% project funding, which is off balance sheet and will have no damage to the balance sheet by debt loading.
Achieving a low or net-zero carbon economy is essential to mitigating and adapting to climate change. Britain is halfway to its goal of being carbon neutral by 2050. Greenhouse gases have fallen by 51% against the government’s baseline for measuring progress towards net zero. Carbon dioxide emissions fell by 13% last year to the lowest level in nearly 150 years.
And, whilst there is a long road ahead, the government has set out legal obligations for companies to work towards meeting their carbon neutral target.
“It’s vital for companies to make a start on their road map for a greener future, if they haven’t already” Hamilton explains. “Funding solutions play a role in that journey, we’re ready to have conversations with businesses that want to understand the renewal funding solutions available to them to accelerate their route to being green.”