The Confederation for British Industry (CBI) has asked the
Government to change tax laws in order to increase energy
efficiency measures in commercial property buildings. The CBI's
report, issued this week, said that "both businesses and government
still have a long way to go in order to fully unlock the energy
efficiency opportunity", proposing that the state should introduce
variable business rates reflecting the energy use of commercial
buildings: "In the short term, business rates for empty
properties could be waived for those undertaking a refurbishment
which would improve the energy efficiency of the building," said
the CBI's report.Rhian Kelly, director for business environment
policy at the CBI, described how the current policy "provides
perverse incentives" not to invest in environmental performance,
because tenants, rather than landlords, reap the benefits of
improved energy efficiency.She added: "This picture must change to
reward those who plough money back into improving the energy
performance of buildings."Patrick Brown, sustainability director at
the British Property Federation (BPF), agrees: "Those that occupy
less efficient properties are going to have to pay higher rates
than they do today to pay for those in more efficient
properties."Brown feels that the current rate would need to be
varied by around 10 per cent to work as an incentive to landlords
and property owners. He also said that although a business rate
break would work for firms upgrading vacant properties, it would be
more complicated for multi-tenanted buildings. Richard Griffiths,
policy and campaigns consultant at the UK Green Building Council,
said:"[Energy efficiency] must be at the very top of the
government's agenda….For many businesses … the scheme has real
potential as a source of finance but, as we have seen with the
domestic version, this in itself is not enough to create a
market."Greg Barker, minister for energy and climate change, said:
"The CBI is absolutely right to highlight the opportunities that
energy efficiency can bring to British business, and the challenges
that remain. Already, the energy efficiency market in the UK is
worth £17.6bn and employs around 136,000 people."However, I'm
determined to do even more to create the right conditions for
businesses to cut energy waste, and take advantage of the energy
efficiency opportunity. That is why we launched the Energy
Efficiency Deployment Office in February 2012 to help businesses
overcome a range of barriers to making considerable cost savings."

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