Support for small firms is crucial

Feb 25 2010 by John Barton, The Journal

THIS will be a defining year on the country’s route from a fossil-fuel based economy to one based on the more environmentally friendly use of resources.

In April, small businesses and individuals will be able to access financial incentives brought about by the feed-in tariffs and simultaneously, larger businesses could be penalised through legislation enshrined in the Carbon Reduction Commitment Programme for failing to adequately reduce their energy consumption. When the legislation goes live in April, more than 150 North East businesses will be affected.

Luckily the region is starting from a high base. Its designation as a Low Carbon Economic Area (LCEA), coupled with excellent renewable potential means it is the vanguard of the UK’s march towards a sustainable future. Big organisations have been quick to capitalise and through the North East Sustainable Resources Board we have a firmly established agenda to capitalise on this excellent opportunity.

But there are dangers too. Competition from other LCEA regions like the Midlands and the South West is fierce and the expected central budget cuts could jeopardise projects that will bring long-term gain.

To ensure longevity it is crucial that small, low-carbon businesses are not overlooked. Businesses with unique offerings add depth and bring diversity to the business landscape – crucial for ensuring the region does not become over-reliant on a handful of giant businesses.

Since formation two years ago, Renew can attest to the enthusiasm and zeal many North East businessmen and women have shown for low-carbon enterprise.

We’ve partnered with businesses and helped secure more than £40m of inward investment to support their start up and operation. By working with 200 businesses, more than 50 jobs had been created or secured.

It’s a trend that will continue too. Examples of businesses on the cusp of making a big impact are numerous: a company called Plasrec in Shildon, County Durham, is about to start producing the UK’s first synthetic diesel from waste and Pyreco on Teesside is offering a unique solution to the environmental problem posed by old vehicle tyres.

However, their and other businesses chances of success are drastically reduced if they are not given the assistance they need.

Without it, only the big players will be able to carry the torch for the North East. Support for all businesses, regardless of size, is crucial if the North East wants to secure a sizeable portion of the low-carbon goods and service market that is emerging.

John Barton, project director at Renew