Wednesday, November 2, 2011

Isra-Mart srl: Climate Change Agreements are working

www.isramart.com

Energy-intensive businesses saved 28.5 million tonnes of carbon last year, exceeding their goal under the Climate Change Agreement (CCA) tax break scheme, according to new government figures.

The Department of Energy and Climate Change (DECC) this week published the carbon savings for 2010 of 54 CCA sectors, including aerospace, food processing and steel manufacturing.

Overall, those sectors beat their target to save 25.8mtCO2/year, with actual emissions dropping 28.5mtCO2/year, representing a saving of 2.7mtCO2/year when fluctuations in the steel market were factored in.

Thirty-eight of the 54 sectors met their targets for 2010, after taking emissions trading by operators into account, according to consultancy AEA, which wrote the report for DECC.

Large energy users signed up to CCAs receive a 65 per cent discount on the government's Climate Change Levy (CCL) through to March 2013 if they meet agreed energy efficiency targets.

Twenty-four sectors performed worse than their original targets. However, 21 of those met their final adjusted target by buying carbon allowances on the EU Emissions Trading System market.

As a result, AEA said 99 per cent of the 9,634 facilities reporting under the scheme had their CCL discounts renewed by government.

The spirits industry was among the first to hail the success of its members, which led to a saving of about £2.6m a year in tax breaks.

DECC's results revealed that 71 facilities in the Spirits Energy Efficiency Company (SEEC) have improved their energy efficiency by 25 per cent since 1999, exceeding a target of 21 per cent.

Julie Hesketh-Laird of the Scotch Whisky Association, hailed the success of the 66 whisky distilleries in SEEC, several of which have invested in biomass plants so they can be powered from Scotch whisky by-products.

"This outstanding result has been achieved by investments in energy saving technologies across the board, including the construction of new distilleries and investments in efficiency measures at existing sites," she said.

She also urged the government to include bottling operations in the CCA. "It's odd, illogical and inequitable that the bottling of other drinks can qualify for a CCA, but not the bottling of spirits at large standalone sites. This must be addressed," she said.

DECC is looking to simplify CCAs, meaning this year's report will be the last to cover CCAs in their current form.