SMALL firms need more incentives from Government, rather than punitive measures, to embrace “green” strategies, according to a new report by small firms lobby group the Forum of Private Businesses (FPB).

The survey found that, understandably, the recession is preventing 22% of small firms implementing environmentally-friendly measures, although nearly the same amount are being encouraged to embrace eco-friendly projects.

Matt Goodman, FPB policy representative, said: “When small businesses are considering implementing environmentally-friendly policies, the will is certainly there, but it is often thwarted by the perception of steep costs and a lack of information and support.”

He added: “It is important to emphasise that measures to reduce carbon emissions can mean savings on the bottom line, but we also need a more joined-up approach from the Government, including a system of workable incentives that are rewarding rather than punitive.”

Almost two-thirds of respondents identified barriers to implementing energy-efficiency processes.

The two main reasons were the costs involved and because businesses in rented premises saw no reason to pay for improvements of benefit to their landlords.

The report also found that many small business owners have been motivated by a sense of responsibility and are pursuing environmental strategies, simply because they believe it is “the right thing to do”.