CBI: Emissions rule changes threaten UK energy security
28 Apr 2010
London – The CBI is warning that a new European Directive could force the UK to close up to 14 power plants, potentially putting energy security at risk. Recent amendments by MEPs to the draft EU Industrial Emissions Directive mean that power plants will need to undergo costly upgrades to comply with air pollution targets or close by 2016.
The business group says that could lead to a quarter of the UK’s electricity generating capacity - up to 14 plants - being forced to close early. It is, therefore, calling for power plants to be given until 2021 to prepare for the proposed changes, which will allow other low-carbon forms of energy to be built to replace the lost capacity and ensure a smooth transition.
“Businesses want to help cut air pollution, but this Directive must be implemented in a way that doesn’t undermine the UK’s energy security,” said John Cridland, CBI deputy-director general. “The timescales currently proposed by some MEPs are unrealistic and could lead to up to 14 UK power plants having to shut prematurely.”
According to the CBI, these plants are old and due to close in the 2020s, so letting them run their course would allow for a smooth transition to new low-carbon energy sources and avoid creating a serious energy gap.
“The majority of EU member states want a phased introduction for this Directive and it is vital that the new UK Government makes protecting our energy security one of its top priorities,” said Cridland. “In the longer-term, the UK needs to develop a broad energy mix that includes new nuclear plants, clean coal, gas, wind and other renewable sources.”
The EU Directive is being voted on by the European Parliament’s Committee on Environment, Public Health and Food Safety in Brussels on 4 May. After the vote, negotiations will take place between the Council and European Parliament, before the directive is voted on in a plenary session in Strasbourg during the summer months.
Moreover, the CBI is also concerned that the Directive will reduce the UK’s flexibility to decide how best to meet the air pollution targets in the most cost-effective way. It argues that the current system of monitoring industrial emissions with the UK’s Environment Agency and individual plants works well, and should remain the basis for complying with the Directive.
“We need a system that retains flexibility and is risk-based to take account of local environmental conditions and individual business investment cycles,” Sean McGuire, director of CBI Brussels. “If implemented in its current form, these factors wouldn’t be taken into account and firms would be subjected to an arbitrary one-size-fits-all European approach.”
