In March the Department for Environment, Food and Rural Affairs (defra) published provisional statistics showing that the total Greenhouse Gas emissions for 2007 had dropped by two per cent over the previous year, falling from 652.3 million tonnes of carbon dioxide in 2006 to 639.4 million tonnes.

Commenting on these statistics the Secretary of State for the Environment the Rt. Hon. Hilary Benn acknowledged that they showed the UK is making progress in cutting emissions. However, he added: "While the Government can provide encouragement and incentives, we also need individuals and businesses to do their bit to cut their carbon footprint because it's only by all of us tackling climate change that we will achieve success."

One of the latest legislations the Government introduced was the Renewable Transport Fuel Obligation (RTFO), which came into affect on the 15th April this year. The RTFO has meant that every fuel company in the UK is obliged to include biofuel in their petrol and diesel supplies. Biofuel (which is also called biodiesel or agrofuel) is considered to be more environmentally friendly than petrol or diesel because it comes from renewable sources and burns cleaner than traditional fuels. All cars are able to run with up to five per cent biofuel mixed with petrol or diesel.

The RTFO has, however, caused a lot of controversy, with pressure groups such as Green Peace, Oxfam and Friends of the Earth against the legislation. These organisations claim that biofuels actually cause environmental and social problems such as deforestation, loss of habitat and higher food prices. Prior to the RTFO coming in affect Green Peace campaigned for the legislation to be put on hold while more research was done to investigate the consequences of biofuels.

Although those in favour of biofuel acknowledge that there is some truth to these claims, they highlight that the biofuel industry is more complex. Charles Hill, Chief Executive of BioDepot, a franchise that processes cooking oil into biofuel, explains: "In my opinion biofuel is being tarnished with the same brush. Critics are not differentiating between good biodiesel and bad. If you look at some traditional biodiesel producers, they are using land to grow fuel that might be used for food and in their whole production of biofuel they might be using more carbon than is being saved - this is clearly non-sustainable.

"BioDepot is different in that we are providing a process that turns a waste product into something useful. We are reducing carbon emissions and are, therefore, sustainable. There is some talk that in its targets for the RTFO the government will differentiate between sustainable and non-sustainable fuel."

Although the Government has introduced the RTFO in an effort to encourage companies and individuals to reduce carbon emissions, Hill does not think it will have a great impact. He reveals: "I suspect the impact RTFO has on the reduction of carbon emissions won't be as much as the Government thinks it will. The Excise Duty, which makes biodiesel 20 pence less than normal fuel, has more impact but from April 2010 that is going. I think the Excise Duty is a true encouragement for people to use biodiesel and for companies to invest in it."

Whether or not the RTFO has a great impact on the reduction of carbon emissions, biofuels are becoming a more popular method with companies wanting to reduce their carbon emissions. Hill comments: "I have noticed that there has been an increase in businesses wanting to reduce their carbon emissions. The bigger catering companies have been looking at their own corporate responsibility programmes and are moving towards using more sustainable fuels."

In addition to the trend towards using more sustainable fuels, many companies have been joining carbon neutral schemes to offset their carbon emissions. Companies that join these schemes have their carbon emission output calculated, the result of which indicates how much they need to fund into projects that offset their emissions. In return companies are able to declare themselves 'carbon neutral'.

Co2balance, which created the worldwide CarbonZero project, has highlighted that by becoming carbon neutral companies are not only able to impact climate change but can also improve business. Co2balance states that research from the Carbon Trust has shown that 66 per cent of UK consumers are more likely to buy products with a low carbon footprint and that environmental concerns are factored by consumers into more than 50 per cent of buying decisions when purchasing cars, electronic goods, fast moving consumer goods and food and drink products. Recognition Express, a franchise that manufactures and supplies corporate and personalised promotional products, joined the CarbonZero project earlier this year and is offsetting its emissions by supporting tree-planting projects in Devon, Cornwall and Cumbria. Zoe Waistell, Recognition Express Marketing Manager, states: "We wanted to make some measurable impact on climate change and do something positive to protect and re-invest in nature reserves and woodland areas in the UK."

Critics of carbon neutral schemes have argued that some companies use them to declare themselves carbon neutral, as they are offsetting their carbon emissions, however they do not reduce the amount of emissions they produce but still enjoy the publicity. Waistell argues: "Naturally, there will be people who jump on the band wagon for publicity reasons alongside those companies who are seriously committed to reducing their carbon footprint. However, whatever a company's motivation the benefits to the environment are still positive whether people are reducing their emissions or offsetting them."

Even without volunteering for carbon neutral schemes or using biofuel there are many other ways in which businesses can reduce carbon emissions. Waistell adds: "We have recently ended our contract with a bottle water machine company and moved to a more environmentally friendly system that filters tap water, removing the need for plastic bottles. We also use glasses rather than disposable plastic cups for our water - again to help reduce carbon emissions and the amount of waste we produce.

"Likewise, we are emailing more documents rather than using print and post and we are more mindful of the energy we use, switching off all computers, printers, lighting and heating at the end of each day."

Text: Derin Ibrahim