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| Emissions plan
leaves UK isolated |
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Press release issued Thursday 6th May 2004 – 17:50
pm
The Energy Intensive Users Group expressed dismay at the
latest proposals to cap CO2 emissions submitted to the Commission
earlier this week. The government is continuing to propose swingeing cuts in
CO2 emissions - twice what is required to meet our international
commitment under the Kyoto protocol - whilst European competitors are planning
to let their emissions grow. The consequence will be internationally
uncompetitive electricity prices, around 40% above current levels by 2010. EIUG
has warned that unilateral action on emissions will encourage the migration of
energy-intensive industries offshore without reducing global emissions.
EIUG's Director, Jeremy Nicholson, said: "Climate change
is a serious issue but it will not be addressed by one sided heroic gestures.
The UK remains fundamentally out of line with our European competitors on this
issue. We will see if the Commission can persuade the other countries to abide
by their Kyoto commitments. If not, we cannot be expected to go it alone
without irreparable damage to our competitiveness."
The UK proposals contrast with countries like Germany,
Italy, Austria and Portugal who are effectively abandoning their Kyoto
commitments by allowing emissions from power generation to rise, in order to
avoid damaging their economies.
Notes to editors:
- The EIUG represents the UK's industrial sectors (above)
for which secure internationally competitive prices are a matter of commercial
necessity.
- Global Insight are predicting UK electricity prices will
rise up to 40% by 2010 as a result of emissions trading, far more than in
competitors like Italy, Spain and the Netherlands.
- The EU emissions trading scheme is supposed to go live in
2005, although doubts have been raised right across Europe about the
practicality of this timetable. The EU is the only part of the world where such
a scheme is being considered.
- The EU's competitors like China, India and other
developing countries have no obligations to restrain emissions under the Kyoto
protocol. The USA and Australia have rejected the treaty altogether. The Kyoto
protocol cannot now come into force unless ratified by Russia, which has yet to
confirm its intentions. President Putin's economic adviser has said Kyoto
"dooms Russia to poverty, weakness and backwardness" and would be "a millstone
for Russia's economy", suggesting it is unlikely to ratify.
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