Energy bills stop SMEs’ ability to take action on climate

NatWest and the Federation of Small Businesses have analysed the impact that rising energy bills are having on SMEs’ ability to take action on climate.

Whilst the FSB welcome the latest Government announcement regarding price caps and extended support for smaller businesses that are less likely to be able to invest in their own energy infrastructure, both have expressed concerns that the rising cost of living is directly stalling the UK’s efforts to reach net-zero by 2050 as SMEs are forced to focus on immediate cashflow concerns over long-term sustainable investment.

The UK’s SMEs have previously expressed widespread positive desire to invest in green energy, and NatWest’s Sustainability PMI report revealed that more than half of UK SMEs (51 per cent) reported investing in green energy as a high priority for the year ahead.

Andrew Harrison, head of business banking, NatWest Group said: “The long-term impact is that our nation’s small businesses are left behind the curve on green innovation, less efficient than competitors, more exposed to future supply-side shocks and unable to make their crucial contribution to UK climate targets. We must support long-term investment into new, clean technology that will lead to lower energy prices for longer and a much more resilient UK energy infrastructure.”

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