• It’s been a busy and productive year. • As an energy-intensive industry, we’ve had much to do in 2011. • Looking at energy efficiency, renewables, energy costs and much more.
by competitors outside Europe.
In the light of these projections and policies, it is no wonder that an increasing number of UK mills have built, are building, or considering building their own low-carbon generation equipment, either gas or biomass powered Combined Heat and Power (CHP).
Climate Change Agreements
Another lobbying success early in 2011 was persuading the Government of the value of the Climate Change Agreements (CCA) scheme and that it should be continued with a new phase. This support is worth around £20 million each year to the industry.
The protracted uncertainty over the long term future of the scheme effectively stopped the development of revised rules for a new CCA, meaning Members will continue to enjoy the 65% discount on Climate Change Levy thanks to passing the final energy efficiency target within the old CCA. New installation-specific energy efficiency targets will need to be set in 2012 ahead of the new CCA starting in 2013.
Government support for UK-based Energy Intensive Industries
Throughout the year CPI focused on persuading the Government that the cumulative impact of policies on energy prices is unsustainable for our sector in the long term. Recent Government polices using energy as a sector, where additional taxation can be ‘hidden’, are of particular concern.
Thankfully, the Autumn Statement was notable for the acceptance by the Chancellor that EIIs will be made uncompetitive by UK-only additional costs. Papermaking was specifically picked out as one of the sectors at risk. While the support package of £250 million is not enough, it does mark a major and welcome change in attitude.
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