Industrial sectors sign up to 2020 energy efficiency targets

According to the Government, the agreement will deliver an 11% energy efficiency improvement across all industry sectors by 2020 against agreed baselines.

The new CCA scheme, which came into effect yesterday, provides an extension to the Climate Change Levy rebate for energy intensive industries until 2023 in return for meeting energy efficiency improvement targets.

The Environment Agency (EA) will administer the new scheme, providing a simplified and streamlined approach to administration for both Government and Industry.

A total of 51 industrial sectors including steel, aerospace and farming have signed up across 9,000 sites.

Minister for Climate Change, Greg Barker, said: “I am really impressed by the commitment shown by the UK Energy Intensive Industry to improving their competitiveness and energy efficiency. This partnership with Government demonstrates our commitment to growth”.

These savings will be delivered through the implementation of measures, including high efficiency motors, variable speed drivers, energy efficient boilers, improved energy management systems and process optimisation.

The Government says that if all sectors meet their targets from 2013 to 2020 against agreed baselines, carbon dioxide emissions could be reduced by 19 million tonnes, while energy consumption could fall by approximately 100TWh.

It says this will also deliver an estimated saving to participants on the Climate Change Levy of £300m each year.

Chair of the CCA Working Group of the UK Emissions Trading Group (ETG), Ray Gluckman, said: “The ETG appreciates the extensive consultation undertaken by DECC on this important element of climate change and energy efficiency policy.

“This has enabled industry to work with Government and the EA to help streamline and improve the operation of CCAs. The targets are challenging but provide industry with some degree of certainty over the goals to be achieved over the next 8 years,” he added.

Leigh Stringer