Environment Minster Jane Davidson has announced £5 million of new funding to help businesses and the public sector to become more energy efficient and tackle climate change.

The money will support initiatives to promote energy efficiency and low carbon technology in businesses and the public sector.

This includes working with Carbon Trust to provide loans for 'spend and save' projects that will reduce energy costs and contribute to reductions in greenhouse gasses. The move supports the Welsh Assembly Government's recently published consultation on its Climate Change Strategy - Programme of Action which includes advice and support for businesses to go green.

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Ms Davidson said: "The Welsh Assembly Government has made a commitment to cut greenhouse gasses by 3% per year from 2011 in devolved areas. To achieve this all parts of Welsh society will have to play their part and this includes making business and the public sector more energy efficient. This money will help the private and public sectors do all they can to reduce their carbon footprint. For business this will also mean they are more competitive.

"The Carbon Trust has a proven track record in helping organisations cut costs and emissions. Their highly effective loan schemes typically save at least twice their investment in user costs and they have recently adjusted their loan terms to ensure take up through the recession."

The new support is part of a £40 million capital expenditure to provide an important economic stimulus to help people, communities and businesses in the face of the global recession, as well as taking forward the One Wales agenda.

(CD/JM)