As the UK hosts COP26, the eyes of the world are on global heads of state as they chart the course of future international climate collaboration and action. Countries are being asked to come forward with ambitious 2030 emissions reductions targets that align with reaching net zero by 2050.
Alok Sharma’s clear objectives for the UK Presidency include accelerating electric vehicle roll out and unleashing the trillions in private and public finance to meet global net zero.
SMEs hope that the COP26 event will bring about measures that will help them become more sustainable, according to a report from the Federation of Small Businesses (FSB). Mike Cherry, national chair of the FSB, said small ﬁrms “are keen to play their part” in regard to climate change, but often lack the resources, ﬁnances and dedicated specialists enjoyed by larger businesses, “so can ﬁnd identifying and taking the necessary steps a challenge”. A poll by the FSB shows that while the majority of SMEs are concerned about climate change, just one in three have a plan in place to help tackle it.
Fighting climate change will be a huge collective global eﬀort, but what can individual businesses do right now to balance their proﬁts and the planet – and what is preventing them from taking action right now?
Although it is continuously evolving, ‘green tech’ has been with us for the past 20 years. The Oxford English Dictionary deﬁnes it as a “technology whose use is intended to mitigate or reverse the eﬀects of human activity on the environment”.
To date, the biggest single barrier to adopting these new technologies has been the substantial up front capital costs typically associated with the acquisition, commissioning and installation of green energy assets, prior to the beneﬁts being realised.
While the vast majority of companies are willing to make positive noises when it comes to making their business greener, the number who are willing to make the required investment, that doesn’t just amount to ‘greenwashing’, has historically been smaller. Asset ﬁnance is ideally suited to enabling businesses to acquire the latest, most energy-eﬃcient equipment, technology and vehicles quickly, easily and aﬀordably. It eliminates the need to make a large upfront payment and matches the business outlay to the outcomes of adopting the technology by spreading the cost of the useful life of the assets concerned.
Asset ﬁnance can help your business acquire a wide range of green energy assets from biomass boilers and CHP systems, recycling machinery, Solar Photovoltaic (PV) panels, LED lighting, agri-tech solutions and wind turbine technology to electric cars and vehicles and EV car charging stations and much more.
At Propel, we strongly support the Finance & Leasing Association’s (FLA) Building on Net Zero Plan, which sets out a clear and consistent approach to green ﬁnance, including the introduction of a ‘Green Finance Guarantee’ (GFG), further support for net zero commercial vehicles including plant & machinery (electric, hydrogen and other forms of alternative fuel) and supportive measures for businesses including capital allowance changes.
Since Propel was founded in 1996, we have been funding the revolution in green energy assets and technology, from LED technology to renewable energy in the agriculture sector and electric vehicles for business use.
Whether your business is looking to acquire one asset or to invest in a comprehensive ESG project, Propel is here to help you on the path to a sustainable future.
Head of Product & Specialisms