Memorandum submitted by Hambelside Danelaw
It is been drawn to my attention that the EAC's
current inquiry has invited comment on how well Enhanced Capital
Allowances scheme is working in terms of business saving energy.
As an environmental award-winning building products
manufacturer that is carbon negative, Hambleside Danelaw ensures
that where machinery is replaced or plant introduced, it seeks
to purchase the most energy efficient equipment approved by the
Carbon Trust. Naturally therefore we are supporter of the ECA
scheme and applaud the activities of the Trust in its efforts
to encourage energy efficiency in British businesses.
However, energy efficient plant is only part
of the story as we have made clear to the select committee before
and to Stern who used our observations on technological failure
in the building industry in his final report. A major contribution
which business can make in fighting climate change is by operating
from energy efficient commercial buildings, but despite the sustainable
development provisions in the Building Regulations, very few companies
are doing this.
To encourage the building of more sustainable
commercial and public buildings, we believe that the ECA scheme
should be extended beyond plant to other energy-efficient materials
which do not necessarily incorporate moving parts. This would
recognise the fact that technological advances in high-performing
insulated materials can make a significant difference in cutting
emissions, whilst reducing heating, lighting and air-conditioning
costs for the building occupier.
Of course, these cost benefits are of little
interest to the construction company who walks away from building
after completion of the project. The market failure is compounded
by the builder's common practice of sourcing the cheapest materials
(often from the Far East and Eastern Europe) which have a limited
service life and poor insulating values.
Extending the ECA scheme would encourage businesses
that are commissioning the building of new premises, moving to
new premises or refurbishing existing facilities to consider more
seriously the greener options and we would urge the select committee
to challenge the Government and the Carbon Trust on this. As you
know, financial incentives have been introduced to encourage the
construction of zero-carbon homes.
Hambleside Danelaw feels that Stern was right
and that the time is right to look more seriously at incentives
in respect of public and commercial buildings. The ECA scheme
provides a ready-made vehicle for taking this forward.
26 October 2007
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