Britain’s £60 billion chemical industry faces a new competitiveness challenge so says it’s representative body, the Chemical Industries Association. Reacting to the Carbon Budget announced by Chris Huhne, the CIA says transitional support measures must be effective or industries that make carbon saving products will be wiped out.

Acknowledging that government has accepted the need for transition measures, boss of the Association Steve Elliott has warned that unless they are effective the cumulative policy impact on energy related costs (already the highest in Europe) lifts from10% to over 100% of profits – turning successful companies making green products to loss making concerns.

Pressed on this Elliott said he and other industries want to work with Government to make sure the green future can be delivered but if the measures are half-hearted, manufacturing jobs and companies, who are delivering low carbon solutions, will be ripped out of the industrial heartlands of the UK with very little prospect of new businesses being attracted to invest.

Contact Name: Fiona Ferguson