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The combined impact of the Government’s climate change policies is
imposing significant costs on the UK’s energy intensive industries,
and without urgent review could see some companies leaving the UK for good,
warns a report published today (Tuesday).
Steel making, ceramics, paper, cement and lime manufacture, aluminium,
basic inorganic chemicals and other industries currently employ some 225,000
workers, producing products essential to the UK’s low carbon economy,
from steel and light weight composites for wind turbines and electric cars,
to glass, ceramics and advanced insulating materials for low-energy
housing.
The Cumulative Impact of Climate Change Policies on UK Energy
Intensive Industries is published by the Energy-Intensive Users Group
(EIUG) and the TUC and says that the forecast increase in total energy
bills, taking electricity, gas and emissions reduction schemes together,
could be as high as 141 per cent by 2020.
The report says that these cost increases present a major challenge to
the viability of a number of named companies across different
energy-intensive manufacturers in the UK – including ceramics,
chemicals, steel, aluminium and paper.
Commenting on the report TUC General Secretary Brendan Barber
said: “Employers and unions in these manufacturing industries are
determined to make sure these companies have a future in the UK’s
low carbon economy. A just transition to a greener economy is vital for
these industries and the jobs of the workers they employ, and they make a
significant contribution to the UK economy.”
EIUG Director Jeremy Nicholson said: “Government needs to
ensure a better balance of policy on emissions reductions between the
industrial, commercial, transport and domestic sectors. As green tax
structures stand today, energy intensive industries are carrying a heavy
burden of policies to tackle climate change and reduce energy use. Yet
these companies make a significant contribution to UK GDP and
exports.”
Managing Director and CEO of Tata Steel Europe, Kirby Adams said:
“Many governments have determined that man-made climate change is one
of the most pressing issues the world faces today. Corus can be part of the
solution through relentless process improvements, investing in breakthrough
technologies and supplying and developing new products that underpin a
lower CO2 economy.
“Many of the taxes and costs identified in this report are
UK-specific and will reduce the competitiveness of Corus’ British
operations. Moreover, the very significant cumulative nature of the
additional costs likely to come in under European legislation will damage
the competitiveness of all EU steelmakers and limit their ability to fulfil
their crucial role in a low carbon future.”
Chief Executive Officer of GrowHow, Paul
Thompson, said: “The fertiliser industry has been identified by
the EU’s own study to be the sector most exposed to the risk of
‘carbon leakage’. Despite our substantial recent investment to
reduce greenhouse gas emissions by more than 40 per cent, the combined
effect of these climate change policies will almost certainly make this a
reality in the UK.”
British Ceramic Confederation President and Chief Executive of Ibstock Brick Limited, Wayne Sheppard said:
“Ibstock has already invested more than
£50 million in energy-efficiency improvements in the UK in the
last decade. We had reduced our carbon emissions pre-recession by 18 per
cent as a result. We want to invest more in the UK,
but we are competing for funds from our parent company with our other
plants in Europe and around the world. The
UK’s
climate change policies are seriously out of line with other
countries’ more pragmatic approaches.”
The EIUG and the TUC both support the shift to a low carbon economy as
an essential response to the acknowledged challenge of climate change, and
believe the UK’s energy intensive industries are vital to this transition.
The report calls for:
·
A balance of climate change policies between
industry and other sectors of the UK
to transform the UK
to a low carbon economy.
·
UK climate change policies to
have accompanying impact assessments that look at the combined effect of
all related policies on intensive energy users.
·
The Government to undertake a full
cost-benefit analysis of energy-intensive sectors to understand the direct
impact on the companies and the GDP benefit to the UK and its
regions.
For further details, please contact Jeremy Nicholson (Mob. 07785
280568)
Notes for editors:
- The Cumulative Impact of Climate Change Policies on UK Energy
Intensive Industries is available at WWA
report for EIUG & TUC
- The report was produced for the EIUG and the TUC by Waters Wye Associates
- The EIUG is comprised of trade associations and customer
groups representing industrial sectors with the heaviest energy consumption
in the UK.
Media enquiries:
Jeremy Nicholson, EIUG M:
07785 280568 W: www.eiug.org.uk
Liz Chinchen, TUC T: 020
7467 1248 M: 07778 158175 E: media@tuc.org.uk
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© Energy Intensive Users
Group
27 July 2010
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