Hotels, banks, schools, local authorities and 5,000 other large organisations could all be slashing their energy bills and carbon emissions as part of a new government initiative aimed at boosting energy efficiency and tackling climate change.

A new guide is published today by the Department of Energy and Climate Change to provide a helping hand to business to prepare for the introduction of the Carbon Reduction Commitment, which will begin in April 2010.

The guide establishes who is covered by the scheme and guides the reader step-by-step through what they need to do to take part in the scheme.

Energy and Climate Change Minister, Joan Ruddock, said: "Cutting back on energy use and becoming more energy efficient makes economic sense for firms at the best of times, but it's even more important now given the difficult business environment.

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"By taking measures to improve energy efficiency, businesses can slash their energy costs. The Carbon Reduction Commitment could help business save a total of £1 billion by 2020, whilst also helping them play their part in the fight against climate change."

The revenue raised from the scheme will be recycled back to participants on the basis of a league table - so that those who are making the most improvements in energy efficiency will be financially rewarded, and will receive recognition for their achievements.

The Government will further the roll out of the Carbon Reduction Commitment by launching a consultation today on the regulations which will form the basis of the initiative. Participating organisations will have to register with the Environment Agency who will administer the scheme.

Advice and financial incentives, are already being provided by the Government, to help businesses take practical steps to improve their energy efficiency through the Carbon Trust and Climate Change Agreements.

(JM/BMcC)