BUSINESSES in the Isle of Man are being given a helping hand to reduce energy costs and improve their overall operational efficiency.

The Department of Economic Development has launched a 0 per cent green business loan scheme in a bid to reduce the Island's carbon footprint.

The scheme – which offers a 100 per cent loan of up to £20,000 towards the cost of projects that improve energy efficiency – is open to all business sectors in the Island.

Projects which are deemed suitable range from lighting and lighting controls, compressed air systems and controls to insulation upgrades.

Each project will be assessed on its potential to deliver energy savings and preference will be given to those that provide the greatest reduction in CO2 emission.

Dr Ken Milne, senior manager for energy policy in the Isle of Man, said: "Due to the capital costs of installing energy efficiency measures we sometimes find that businesses tend to only implement recommendations from a Department of Economic Development energy survey that have no cost or low cost. 

"Furthermore a recent report commissioned by the UK Carbon Trust (The Business of Energy Efficiency report) indicates that 80 per cent of businesses are likely to only fund projects where the payback period is less than three years.

"With this in mind the 0 per cent green business loan scheme has been designed to try and assist companies in overcoming any investment hurdles. Added to this there is an overall economic benefit for the Island - by reducing energy usage products manufactured on the Isle of Man will be more competitive for export."

Economic Development Minister Allan Bell said: "This initiative demonstrates the government's commitment to working closely with local companies to introduce policies which not only make sound business sense but also generate work for them to deliver energy efficiency products and services."

For more information on the 0 per cent green business loan scheme visit: www.gov.im/ded/energy/greenbusinessloan.xml