A new fund which will provide financial support to help smaller businesses reduce their energy use has been launched.

The £7 million ‘Green Business Fund’ is being made available to small and medium sized firms in England, Scotland and Wales on a first-come, first-served basis.

The Carbon Trust will offer energy-saving training, cost-saving assessments, implementation advice and capital for the installation of energy efficient technologies.

Eligible companies can apply for funding covering up to 15% of a project, up to a maximum of £10,000.

It can be used for a number of technologies including LEDs, heating, ventilation and air conditioning (HVAC) and energy efficiency controls across a range of business sector such as manufacturing, retail and hospitality.

The Carbon Trust expects the scheme, which hopes to support up to 2,000 businesses, to enable investment totalling £55 million and deliver savings of almost £130 million.

Hugh Jones, Managing Director, Advisory at the Carbon Trust said: “Our experience of working with thousands of companies across the UK indicates that year-on-year savings of 20% to 30% can be delivered through action on energy efficiency. We’d encourage smaller companies to apply to make the most of the fund on offer in order to realise significant savings on their bottom line.”

The organisation claims to have saved British businesses £5.5 billion and 55MtCO2 through advice and financial support.