British businesses have managed to reduce their carbon emissions by 17 million tonnes since 2001, saving them some £1 billion, the Carbon Trust has said.

Small businesses have benefited in particular, the agency argued.

According to its 2007/08 annual report, over the last three years the Trust has helped smaller businesses to cut almost one million tonnes of carbon output and to implement more than £100 million of direct cost savings.

In 2007/08 alone, it provided SMEs with some £40 million of support.

The Carbon Trust is an independent company, set up by government in response to the threat of climate change, to help accelerate the move to a low carbon economy.

The organisation works with UK business to explain, develop and finance low carbon enterprise.

Tom Delay, chief executive of the Carbon Trust, said: “We fundamentally believe that a move to a low carbon world represents a vast commercial opportunity for businesses. In the short-term, with energy prices continuing to rise, the need for business to become ‘carbon literate’ is ever greater.

“Going forward, the companies that prepare now for the move to a low carbon economy will be the ones best placed to realise the vast commercial opportunities that a low carbon world will bring. We’re proud of what we’ve achieved so far, and look forward to continuing to help businesses in the UK and further afield understand the business risks – and embrace the business opportunities – presented by climate change.”

Dr Neil Bentley, director of business environment at the CBI, said: “The Carbon Trust provides important practical advice to businesses of all sizes looking to lower their carbon emissions. The carbon and cost savings achieved by the companies the Trust has worked with demonstrate that environmental efficiency can also equate to financial efficiency in today’s global marketplace.”