Tax Breaks Would Drive Green Investment Says Survey From Office Space Specialist
A global survey by office space provider Regus, has revealed that 75% of companies worldwide believe that government tax breaks are required in order to accelerate the take-up of green investment.
In addition, the old habit of finger-pointing from developed counties towards developing counties appears misplaced with a higher proportion of companies in India and China monitoring their carbon footprint compared to those in Western European and the US.
The wide-ranging survey also revealed that only 37% of companies worldwide measured their emissions and less than a fifth of companies (19%) measured the size of the carbon footprint created as a result of their business activities Of particular interest was the message that 46% of companies globally would only invest in low-carbon equipment if the running costs were the same or lower than those of conventional equipment.
Within the survey smaller companies are shown to be below average on their actual and predicted level of green investment, showing clearly that smaller businesses are finding it harder to select low-carbon equipment when it is only available at a marginally higher price. This is driven by a focus on short-term needs overriding more long-term investment. With only 19% of small businesses monitoring their carbon foot print compared to 43% of large businesses and only 36% of small businesses having invested in green equipment compared to 59% of large businesses tough government targets are evidently not taking into account the reality of green equipment take up among smaller businesses.
Mark Dixon, Chief Executive of Regus, commented: ΓÇ£Take-up of green equipment and monitoring initiatives is still disappointingly low, particularly for smaller companies. Yet small and medium-sized companies account for half of the any countryΓÇÖs business turnover. If government is serious about meeting ambitious carbon emission reduction targets by mid-century, then it needs to properly incentivise the change. At the moment, low-carbon business technology is often limited in range and sold at premium pricing. This is proving an obstacle for businesses to invest. Tax breaks will help enormously, as our survey shows, and by accelerating take-up will also help to create a mass market where unit prices fall.ΓÇ¥
ΓÇ£Environmental investments are not limited to technology alone, but need to be applicable to all effective and measurable environmental initiatives, such as the minimisation of premises under-occupancy. Conservative estimates hold that 38% of office space is unoccupied at any given time,yet that space is still being heated, cooled and lit, generating tonnes of unnecessary carbon emissions each year. Reducing office under-occupancy should therefore be just as eligible for tax breaks as low-energy equipment.ΓÇ¥
You can access the full report and survey finding by clicking HERE