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A 'Green' finance model, specially
developed by ebm-papst UK - one of the leading
manufacturers of energy efficient fans and motors - has
been donated to the Federation of Environmental Trade
Associations (FETA) to help promote awareness of energy
efficiency whole-life costs and counter the 'bottom
line' mentality employed by much of British business.
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The Energy Reduction Group (ERG) of FETA is planning to encourage
a culture change by motivating those at Board level - focusing
on financial directors, managing directors and chairmen -
because it is at this level that most budgets are agreed.
In an article that appeared in Energy in Buildings and Industry
magazine in January 2006, Mike Lawrence, chairman of the ERG
said that, far from taking the long-term view in energy efficient
plant and equipment, business has continued to be influenced
by a 'bottom line' mentality. This translates into
buying the cheapest product, no matter how much more it will
eventually cost through greater power consumption and government
imposed energy levies.
Part of the ERG strategy to promote a culture shift is to
communicate in the language that senior board members understand
- and this is where the ebm-papst's 'Green'
finance model can play an important role.
The model utilises financial parameters - such as Net Present
Value (NPV), Internal Rate of Return (IIR), Cost of Capital,
Hurdle Rate and Discounted Payback - all terms that are clearly
understood and relevant to financial decision makers. The
end result is that it can be used to accurately compare whole-life
costs of energy efficient technologies to existing and alternative
equipment.
Geoff Lockwood, Technical Director at ebm-papst UK
commented - "We developed what we call our 'Green'
model for our own use, following a series of negotiations
to install energy efficient technology - which, after convincing
building services and energy managers of the benefits, failed
at board level budget reviews. By offering this to the industry
sectors through FETA, we will collectively show that, on a
whole-life basis, we can prove that energy efficient technology
has real benefits when compared to a short-term cost scenario."
The 'Green' Finance Model will be demonstrated on
the ebm-papst stand - G120 - in Hall 20 at the
RAC Show at the NEC from 27 February 2007 to 1 March 2007.
For further information, please contact -
Peter Driver
Command Publicity Ltd
1 The Matchyns
Rivenhall End
Witham
Essex CM8 3HA
Tel: +44 (0)1376 535400
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