Keeping Energy intensive manufacturing competitive

Confederation of Paper Industries( CPI) would like the Chancellor to abandon plans to introduce a Carbon Price Floor as we believe that this single measure – due to be implemented next month – could have a devastating effect on the competitiveness of UK Energy Intensive Manufacturing. Starting at £16 per tonne of carbon, it rises by £2 per tonne every year until 2020 and £4 per tonne thereafter. The EU carbon price is currently c. £5 per tonne and is unlikely to rise above £10 by 2020.

We would also like to see a significant boost for on-site Combined Heat and Power (CHP). CHP is the only current technology that allows the Paper Industry to reduce carbon emissions and to improve energy efficiency. Specifically, we would like to see enhanced capital allowances for construction and all energy and heat output completely exempt from energy or carbon taxation.