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The public sector will go green by default because it doesn’t have any viability pressures. Developers by contrast, are facing squeezed margins under the new energy performance legislation. Changes to capital tax allowances are now essential. Unless amendments to the tax relief on the capital cost of energy efficiency assets are introduced, investment in the service sector will be stifled.

The current enhanced capital allowances system is just not stimulating investment. Few clients in the industry are making decisions on the basis of this relief, however investment would be revitalized with the introduction of a system that benefits new buildings with energy saving measures.

At present, although 100 per cent tax relief is available on certain energy efficient assets, it’s only an acceleration of relief that would be received anyway, but we need to see full tax relief on investment in energy efficient buildings.

The biggest problem developers are facing is that many eco-friendly projects just don’t seem to be measuring up. If some of the very large organisations can’t get their plans for eco-developments to work, what’s your smaller scale developer going to do?

Developers need incentives with real benefits. Whilst the grants are welcome, they are not as good as they should be. The other problem is that the so-called two per cent increase in energy efficiency costs is just pie in the sky for some schemes.

What is required is the reintroduction of something similar to the Enterprise Zone initiatives, which would provide the much needed catalyst to make this all work.

The government should do more on the domestic front. It is on course to miss targets for improving the energy performance of the housing stock. Significant incentives need to be introduced for homeowners in order that properties can be upgraded to be more eco friendly and energy efficient.

There needs to be serious consideration of financial incentives to encourage people to make their homes more energy efficient and adopt micro-generation technology.

I believe it is unrealistic to expect savings in energy costs alone to pay for investment in these products. Successful schemes that have used incentives, like council tax rebates, should be studied and rolled out nationwide.