IoM Loan Scheme To Facilitate Clean Tech Industry

by Jason Gorringe, Tax-News.com, London

13 September 2011

The Isle of Man Department of Economic Development has announced the launch of a 0%-interest green business loan scheme, to aid growth in the cleantech industry and meet the island's commitment to reduce its carbon footprint.

The scheme - which offers a 100% loan of up to GBP20,000 towards the cost of projects that improve energy efficiency - is open to all business sectors where projects will involve energy efficiency improvements in Isle of Man business premises.

The government said each project will be assessed on its potential to deliver energy savings with preference given to those that provide the greatest reduction in CO2 emissions.

Minister for Economic Development, Allan Bell commented:

"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."

Ken Milne, senior manager for energy policy, added:

"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% of businesses are likely to only fund projects where the payback period is less than 3 years. With this in mind, the 0% 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."

The loan scheme will also serve to benefit the island's clean tech sector, which according to a recent economic report has high potential for growth.

The Economic Report, which covers the second quarter of 2011 from April 1 to June 30, refers to a recent independent survey conducted by PricewaterhouseCoopers. Its findings show that the island’s clean tech cluster is currently home to more than 100 companies, with an estimated annual turnover of GBP4.6m. These businesses forecast that they will grow to a turnover of GBP10.6m (130% increase), a GBP1.2m tax contribution (50% increase to government) and a workforce of 125 employees (47% increase) by 2014.

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