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CPI: UK climate change policies threaten the future of energy intensive sectors such as paper

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CPI: UK climate change policies threaten the future of energy intensive sectors such as paper

July 27, 2010 - 20:23
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SWINDON, UK, July 28, 2010 (Press Release) -

Members of the Confederation of Paper Industries (CPI) have contributed to a report issued on Tuesday 27 July highlighting The Cumulative Impact of Climate Change Policies on UK Energy Intensive Industries.

The report has been published jointly by the Energy Intensive Users Group (EIUG) and the TUC, and concludes that total energy bills could rise by 141% by 2020 as a result of UK government energy policy and emissions reduction schemes.

Such a steep rise in UK costs would jeopardise the future competitiveness of all energy intensive industries which together currently employ over 225,000 workers.

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 eff ect of all related policies on intensive energy users;
  • the government to undertake a full cost-benefi t analysis of energy-intensive sectors to understand the direct impact on the companies and the GDP benefi t to the UK and its regions.

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 signifi cant 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 signifi cant contribution to UK GDP and exports."

CPI Director General David Workman added: "The paper industry recognises the importance of moving toward a low-carbon economy, but government needs to understand that UK manufacturers need to be competitive as they operate in global markets. The EIUG/TUC report clearly indicates that if we continue to pursue current policies we risk losing these sectors.

"In the run up to the General Election, all political parties agreed that manufacturing needed to be a core component in reviving the economy and ensuring future prosperity. We need to put the health of manufacturing at the heart of all government decision-making."