Liz Gyekye / PackagingNews

‘Aggressive’ carbon targets may force UK manufacturers abroad

‘Aggressive’ carbon targets may force energy intensive businesses to leave the UK, according to industry experts.

Speaking to PN, PAFA chief executive Barry Turner said: “This is an issue of concern to us. We have been talking to and lobbying government to recognise that they cannot continue to put through aggressive low-carbon targets.

“This is increasing the cost burden on business and will force UK manufacturing businesses out of the country unless they change their policy in this regard.”

Speaking at the Conservative Party Conference in Manchester yesterday, the Chancellor of the Exchequer George Osborne hinted at easing the burden of UK carbon targets. He said that Britain makes up less than 2% of the world’s carbon emissions to China and America’s 40%.

“We’re not going to save the planet by putting our country out of business.

“So, let’s at the very least resolve that we’re going to cut our carbon emissions no slower but also no faster than our fellow countries in Europe.

“That’s what I’ve insisted on in the recent carbon budget.”

The UK has targets to cut its carbon emissions by 50% by 2025 compared with 1990 levels.

The Renewables Obligation (RO) places a mandatory requirement for UK electricity suppliers to source a percentage of electricity that they supply from eligible renewable sources.  The current target is 15% by 2015.

These targets have been met with consternation from leading industry figures.


‘Accumulative cost’

Speaking to PN, Confederation of Paper Industries director general David Workman said: “The accumulative cost impact of a whole range of government policies and strategies are causing great concern amongst all energy-intensive sectors.

“We have very ambitious renewable targets, far more ambitious than any other country in Europe.

“We need to have a strategy for manufacturing – we already have one for carbon emissions reduction. Why don’t we have a manufacturing target making 20% of GDP by 2020?”


‘Millions of pounds’

Workman added that the accumulative cost of meeting these carbon targets could run into potentially hundreds of millions of pounds from 2013 onwards.

In relation to the renewable targets, Workman said that Germany places emphasis on the householder subsidising cost rather than industry. He questioned why this could not happen in the UK.

He also said that, currently, the paper industry gains allowances for the electricity it generates from CHP plants. However, he said from 2013, the industry may not be eligible for free allowances because of changes to the emission trading rules.

British Glass environment director John Stockdale agreed with Workman. He said that the cumulative burden of overlapping carbon reduction policies is causing damage to industries from a financial and administrative point of view.

Other carbon targets causing concern for industry include the introduction of the carbon floor price for 2013 and the Climate Change Agreement.