Writing to the Chancellor ahead of this week’s Autumn Statement, David Workman Workman highlighted that the UK Paper Industry continues to make significant progress in reducing energy consumption and carbon emissions. However, production is inherently energy intensive and the sector remains a major user of both gas and electricity.
Workman welcomed the ongoing freeze within the Carbon Price Support policy but wants the whole policy to be scrapped while the compensation package for electro-intensive installations should be extended and widened in scope.
He added that the promised partial relief from the Renewables Obligation and Contracts for Difference should be delivered as soon as possible. In addition, Workman said that industrial generation should be helped through a meaningful support policy for combined heat and power plant.
Workman said that the Climate Change Levy discount from Climate Change Agreements should be maximised although the Carbon Reduction Commitment should be scrapped.
He concluded that gas should have a key role in helping reduce UK emissions until at least the 2030s, and commended progress towards exploring the potential for shale gas in the UK.