“For the past ten years or so I have found myself working alongside engineers on energy efficiency. With a management background, my role has often been to translate technical information on energy use into language that influential stakeholders within an organisation are more familiar with. It can be a challenge, helping operators, middle managers and senior managers to see value from proposed changes. The guiding principle throughout my work has been to consider who can influence an energy efficiency outcome and then to ask ‘why should they care about it’?

Now, the University of Technology Sydney (UTS) Leadership and Change for Energy Efficiency Program is sharing approaches that bring energy efficiency onto the radar for accountancy professionals and students. Funded by the NSW government Office of Environment & Heritage, this collaborative project brings together the UTS Business School with Ernst & Young and the Chartered Institute of Management Accountants. To date, the team has developed and run interactive seminars, a webinar for senior managers, and a two-day professional development course for senior accountants. We’ve also integrated energy efficiency into various topics within the undergraduate and postgraduate accounting courses at UTS.

So far, we are taken aback by just how interested accountants and managers are in energy efficiency. Many were a little startled to discover that energy efficiency has historically been treated as a fixed cost in Australian businesses, even as energy prices have increased rapidly. One thing we’ve had to do is counter the argument that energy is only a small proportion of overhead cost. While developing new training materials, we have included data on non-energy benefits such as productivity improvements which make a real difference for business operations.

For accountants, it is becoming clear that these non-energy benefits often outweigh energy cost savings which make them more compelling and highlight that energy efficiency can provide an alternative way of looking at a business, generating new ideas and improvements.

Accountants have a key role in helping to bring energy and non-energy data together and taking it to middle and senior managers. In our experience they have found themselves a critical role in packaging up the data and information associated with energy use in ways that create a compelling business case. One big part they play is simply matching the language of internal decision-makers with external funders. We are finding accountants and managers can be an important resource and ally for energy efficiency practitioners.

Do you work with the accountants and managers in your organisation that can influence investment decision on energy efficiency projects? Have they been exposed to training on energy efficiency? How have you used data to get them interested and has their involvement helped drive further investment in energy efficiency?”

Patrick Crittenden is very interested in hearing from individuals and companies on their experiences of incorporating energy efficiency into their accountancy practises. His details are available on his website www.climatechangestrategy.com

This article was first published in Green Buildings Alive, an initiative of the Investa Sustainability Institute.

The UTS Teaching Modules from the project can be found here http://www.business.uts.edu.au/energyefficiency/index.html

The $800m Clean Technology Investment Program and the $200m Clean Technology Food & Foundries Investment Program provide funding for between 25 per cent and 50 per cent of project costs. Low Carbon Australia is helping companies to finance the balance.

How can Low Carbon Australia assist?

Low Carbon Australia and their finance partners can work with companies to help them demonstrate their project’s credentials in relation to the grants merit criteria by providing assistance with:

• carbon saving calculations and evaluations
• preapproved finance to demonstrate your capacity and capability to deliver the project
• demonstrating your ability to achieve a positive return on investment

The grants program requires businesses to submit evidence of their ability to fund their share of the total project cost. This table outlines the amount of grant funding and the corresponding Low Carbon Australia finance available.

What can be funded?

All energy efficiency equipment and industrial process upgrades that result in emissions reductions or energy savings can be funded by Low Carbon Australia.

Low Carbon Australia and their co-finance partners have the expertise and the finance to help businesses realise the most effective energy efficiency solutions and industrial upgrades for company operations. Their energy efficiency finance will allow businesses to meet their share of project costs without up-front capital.

 For more information about Low Carbon Australia visit www.lowcarbonaustralia.com.au

The Australian Government’s commitment of $100 million through the Renewable Energy Venture Capital Fund will be matched dollar for dollar by Softbank China Venture Capital, which has experience in venture capital cross the Asian region.

The $200 million Southern Cross Renewable Energy Fund will assist high-potential Australian renewable energy start-up companies by making critical, early-stage equity investments.

The Minister for Resources and Energy, Martin Ferguson AM MP, launched the fund at the University of Technology Sydney.

 “While Australia has many innovative companies developing renewable energy technologies early-stage companies with a limited operating history have found it difficult to source venture capital,” Minister Ferguson said.

“This fund will provide capital finance and active management to help promising Australian renewable energy companies achieve commercial success in Australia and overseas markets.

“The Australian Government has a strong record of delivering support to the renewable energy sector and this is yet more evidence of our commitment to innovation.”

The Southern Cross Renewable Energy Fund forms part of the Australian Government’s $3.2 billion Australian Renewable Energy Agency.

Southern Cross Venture Partners Pty Ltd is led by experienced investment professionals, and has offices in Sydney, Palo Alto and Shanghai.

The fund is expected to be operational in early 2012, and will actively seek further private sector funding to support its portfolio of companies.

More information on the fund is available at the Australian Renewable Energy Agency’s website.