An energy saving expert has advised businesses that reducing greenhouse gas emissions will lower their bills.

James Ramsay, commercial director of carbon management organisation Carbon Clear, said: "Our experience is that as soon as organisations start managing their carbon they start reducing it, and if you cut carbon, you cut costs."

His comments came after the government announced the launch of the Carbon Reduction Commitment Energy Efficiency Scheme, which is designed to help companies become more aware of their energy usage and help them to reduce it.

The project, which will come into effect from April 1st 2010, will affect around 5,000 businesses, Mr Ramsay explained.

It is targeted at bringing in energy saving measures for major fuel users such as service organisations, banks, hotels and insurance companies.

Businesses spending more than £500,000 a year on energy bills will affected by the scheme, he said.

The government predicted that energy saving measures will save organisations £1 billion a year by 2020.