The Chemical Industries Association welcomes the clear priorities set out in yesterday’s (27 July) Energy Statement.  The Government must act quickly to implement these priorities, particularly gas storage and new nuclear power stations.  Industry must also have the certainty that changes to the planning system will not impede the building of energy infrastructure projects.

We also welcome the recognition of the cumulative costs of climate change policies on industry. A joint report for the Energy-Intensive Users Group and the Trades Union Congress by Waters Wye Associates The Cumulative Impact of Climate Change Policies on UK Energy Intensive Industries found that the forecast increase in total energy bills, taking electricity, gas and emissions reduction schemes together, could be as high as 141 per cent by 2020. The report says that these cost increases present a major challenge to the viability of a number of named companies across different energy-intensive manufacturers in the UK – including ceramics, chemicals, steel, aluminium and paper. 

Commenting on the Energy Statement Steve Elliott, Chemical Industries Association Chief Executive said,  "the cumulative impact of climate change policies hits manufacturing particularly hard and does not reflect the vital role that sectors such as chemicals have in reducing societies carbon footprint such as better insulation, lighter car parts, and low temperature detergents.  The chemical sector has already improved its efficiency by 35% since 1990, it is time that climate change policy recognised the importance of retaining manufacturing in the UK and incentivising innovation in low carbon technology."

Contact Name: Fiona Ferguson