CCA targets to save 100TWh of energy

4th April 2013

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New climate change agreements (CCAs) will save 19 million tonnes of CO2 by 2020, after energy intensive industries commit to meeting energy-efficiency targets

The agreements, which started on 1 April and cover 51 participating sectors, will cut overall energy use by 11% by 2020, which Decc predicts will save about 100TWh of energy.

The sector-specific targets have been agreed, in the main, against a 2008 baseline, and will be passed on through individual CCAs to more than 9,000 facilities in the UK.

The laundry sector has agreed the most stretching target, committing to improve energy efficiency by 25% on 2008 levels, while the compressed industrial gases sector has set the lowest target, an improvement of just 2.6%.

Other sector-agreed targets include: a 3.4% reduction by the cement sector; 6.1% from the ceramics industry and 18% from food and drink production.

“I am really impressed by the commitment shown by the UK’s energy intensive industries to improving their competitiveness and energy efficiency,” said energy and climate change minister Greg Barker.

The targets, which Decc describe as challenging but realistic, are based on evidence provided by each industry on what is cost-effective and potentially possible through technological advancements.

Ray Gluckman, chair of the CCA working group of the UK Emissions Trading Group (ETG) praised Decc’s collaborative approach in setting the targets.

“This has enabled industry to work with government and the Environment Agency to help streamline and improve the operation of CCAs,” he said. “The targets are challenging but provide industry with some degree of certainty over the goals to be achieved over the next 8 years.”

The CCA targets and sectors’ progress against meeting them will be reviewed in 2016.

The energy efficiency goals form part of the new “simplified” CCA scheme that was announced in the 2011 budget. The Environment Agency has taken over as the scheme’s operator from Decc, and will manage it until 2023.

Under the new agreements, the climate change levy discount for electricity has increased from 65% to 90%, which Decc says will save participants £300 million each year.

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