The news this week is about the credit crunch which is affecting the global financial markets and the impact that will have on the global financial system and national economies. Other publications and web sites are better placed to provide information and analysis on those events but what impact might it have on improving a company’s response to climate change and the environment?

There isn’t really a simple answer to this question because the sector we speak to is in fact many sectors and the expectations from businesses will adjust and adjust differently but the feeling of this author is that the events could bring fundamental change. Certain sectors, like emissions trading will continue to grow as the imperative, immediate returns from trading and structures are in place. Further the groups entering this market are also in a sector, commodities, where prices for the time being, are holding up well. Carbon is a shadow energy and if only for that reason will attract investment. Even this week, companies raising funds in this sector remained “up beat”.

Other sectors won’t fair so well. Funding for clean technology, which is considered high risk, is going to become more difficult and the public markets, especially those like the AIM market in the UK, will suffer because investors will be looking to realise value and won’t be looking to invest.

Private equity and venture capital where money is raised will be looking for opportunities to invest but as leverage is reducing for private equity, prices and valuations will drop. It is a tricky time.

For businesses depending on their disposition, a down turn will be the opportunity to reduce costs and this should benefit climate and environment if businesses look at those parts of their business that consume energy and produce waste, they should see savings. As businesses prepare their new budget, hopefully they will begin to zero budget their use of energy and the disposal of waste, look for alternatives and make reductions. If reductions require minimum investment and that investment produces a quick payback, then it will help the environment. However if changes require large amounts of capital investment, then a down turn will make it more difficult as there will be less money. It that event there is likely to be less change.

Now is a good time to think about the costs of business and doing business in an economy that is turning. Looking at energy consumption, waste and travel budgets as examples and looking for alternative ways of doing business that are cheaper and help the environment is not now opportunistic, but it could be essential. Businesses should look to act and reduction and re-use should be the two themes.

So, uncertain times bring change, the expected downturn is not all bad and generally speaking while the investment in clean tech will slow, the news doesn’t have to be all that bad for the environment.