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Commenting on the Government’s Clean Growth Strategy published today, Roz Bulleid, Head of Climate & Environment Policy at EEF, the manufacturers’ organisation, said:
“Manufacturers have been waiting some time to discover how the government intends to meet the UK’s challenging 2030 decarbonisation target and will be pleased to see a broad-ranging and well-structured report, that ties into the wider Industrial Strategy. It balances the need to offset the costs manufacturers face from decarbonisation with greater realisation of the potential opportunities across a range of product areas.
“There is also much appreciated recognition of the need for more government support for industry in key areas, including energy efficiency, heat reuse and carbon capture and storage. Industry stands ready to now work with Government to ensure we move from strategy to delivery at the earliest opportunity.”
Energy Efficiency
“The focus on energy efficiency is very much appreciated, particularly the continued commitment to development of an industrial energy efficiency fund, as promised in the Conservative manifesto. The power sector has received vastly more public support for decarbonisation than industrial firms, even though energy efficiency can cut greenhouse gas emissions more cheaply.
“Sixty percent of our members see the time it takes to recover costs from energy efficiency projects as a barrier and 10% cite access to funds; these can be overcome with more government support.”
Carbon Capture and Storage
“We are pleased to see the revived interest in this area. Carbon capture and storage (CCS) is seen as vital to meeting the UK’s carbon targets at least cost, with the Committee on Climate Change suggesting meeting the UK’s 2050 climate target without it would be twice as expensive. Strong government support mechanisms are needed to deliver on this cost-saving while also allowing UK firms can continue to compete internationally”
Brexit
“It is disappointing to see no development of the government’s position on the future of the EU Emissions Trading System and regulation of the sectors it affects. Companies in the scheme urgently need more clarity on the approach the government will be taking.
“However, the commitment to continue matching EU product standards in this area will be welcomed by many manufacturers. Companies do not want to make multiple products for multiple markets.”
Energy prices
“It is disappointing to see limited mention of the impact climate policy has had on electricity prices in the strategy, specifically the Roadmap to lowering business energy costs promised in the Industrial Strategy green paper. We hope this will follow after the results of the Helm review are published.”
