Carbon pricing policy could 'floor' industry
15 Mar 2011
The UK government has been warned that its ’Floor Price’ policy for carbon - intended to accelerate investment in low-carbon electricity generation and nuclear power - could seriously undermine the UK energy intensive industries, including chemical and steel.
Industry accepts that addressing climate change comes with a price tag, said Terry Scuoler, EEF chief executive of manufacturers’ organisation the EEF.
But, he added, “we are rapidly reaching a tipping point where companies who are internationally mobile will say enough is enough”.
“We cannot keep adding layer upon layer of cost and complexity without damaging our competitiveness and threatening future investment in UK plants,”said Scuoler.
Ian Rodger, UK Steel director, said that a policy re-think was needed if CO2 goals are to be achieved at an acceptable cost.
Labour MP Tom Blenkinsop has taken up the case in the House of Commons, but got “a rather unconvincing reassurance” that the UK government would work with industry to ensure that these policies would not damage manufacturing.
“Companies such as Tata, Sabic, Lucite and GrowHow, and the chemical cluster NEPIC in our area, are very concerned about this,” said the MP for Middlesbrough South and East Cleveland.
