Manufacturers’ organisation dubs climate change policy as ‘chaotic’

The call is made in a report entitled 'Changing the Climate for Manufacturing' published ahead of the Budget by the manufacturers' organisation EEF. EEF head of climate & environment policy, Gareth Stace, said: "Manufacturers have already made substantial reductions in emissions. However, there is now increasing evidence that they are struggling under the weight of legislation at European and national level which has produced a chaotic, over-crowded and complex landscape "We now need a fresh approach. This will help a vibrant manufacturing sector to make a sustainable contribution to reducing global emissions of greenhouse gases and, continue investing and creating jobs in the UK." The report reviews how climate change policy affects industry 10 years on from the introduction of the Climate Change Levy (CCL) and argues that the current climate change policy mix is failing four key tests, which should form the basis of the new approach - • that incentives must be clear, reliable and transparent • that regulation should target the right places • that regulation must be simple and not administratively burdensome • that measures and initiatives must take clear account of their impact on the competitiveness of businesses subject to regulation EEF believes the first step in a new approach must be an economy-wide carbon tax which is based on energy usage. This would provide certainty for users and encourage the investment in energy infrastructure. Initially this should begin with reform of the CCL for industrial users with the medium-term goal, as and when political conditions allow, of extending it throughout the economy by applying it to energy generators. Underlining EEF's disquiet, the energy management specialist Schneider Electric is calling for clearer advice on the CRC Energy Efficiency Scheme, following reports from customers who it says are still confused by the legislation. David Snow, senior energy consultant at Schneider Electric, said: "The CRC Energy Efficiency Scheme requires certain companies to assess how much energy, from all fuel sources, they think they will consume in the forthcoming year. The organisation then has to purchase allowances based on this estimate. If this usage is underestimated, additional allowances will need to be purchased and this could be at a higher cost than the initial price. However, Snow says: "While the CRC Energy Efficiency Scheme is not receiving the most positive response, it does encourage businesses to think about energy efficiency and where possible, implement solutions to reduce the amount of energy they need to buy. This is a vital step towards the future of the UK, as reducing carbon emissions is crucial for the sustainability of society."