Services | Environmental & Legislation

The Kyoto Agreement

The Kyoto Agreement on limiting Greenhouse Gas emissions is arguably the most significant international agreement on Climate Control in recent history. The agreement has been ratified by 174 countries, each of whom have accepted "common but differentiated responsibilities" for protecting the global climate. The USA is the only industrialised country NOT to have signed the agreement, citing limitations on economic growth as the reason. This has a great impact on the success of the controls, as the USA is the world's largest polluter, generating 25% of the globe's man-made greenhouse gases.

The UK government, however, has embraced the scheme, and is taking environmental issues very seriously indeed. In addition to the 12.5% reduction target which has been accepted as part of the EU effort, it has set a highly ambitious domestic target of a 20% reduction in CO₂ emissions by 2010.

Energy Efficiency

These targets will have a great impact on UK business and manufacturing. Energy Management and Efficiency are already seen as increasingly important issues, and companies are being forced to look closely at their energy policy. Not only does promoting better energy efficiency offer environmental benefits, it also results in cost savings. Measures can be as simple as turning off lights and air-conditioning units when not in use.

Energy White Paper (February 2003)

The government released its long-awaited White Paper on Energy in February 2003. The paper sets out the government's policy for reducing the impact of global warning by increasing the UK's supply of renewable energy. By 2010 they want 10% of the UK's electricity supply to be from renewable sources (up from 3% in 2003). Alternative energy sources are to be found which include wind turbines, tidal power, and even solar power systems. They also intend to slowly wind down nuclear power generators, with Britain's first nuclear power plant closing in the Spring of 2003. No new stations will be built and the 16 remaining nuclear plants will wind down over the next 30 years. The government's overiding aim is to cut carbon emissions by 60% on 1990 levels by 2050.

The white paper is said to be highly ambitious and critics doubt the feasibility of many of the targets set.

Emissions Trading

The EU Emissions Trading scheme is to be the blueprint for reducing Carbon dioxide emissions in Europe in order to meet the targets set out in the Kyoto Agreement. The first phase will be implemented in January 2005 with the second to run from 2008. The first trading phase (2005-7) is for Carbon Dioxide, with potential expansion in second phase (2008-12) to cover all greenhouse gases. The scheme will work by imposing a ceiling on all combustion installations, oil refineries, coke ovens, ferrous metal industries and pulp and paper plants over 20MW. Companies that fall into these categories will be obliged to adhere to the 20MW threshold. Alternatively they will have to purchase ‘credits' on the market to cover the additional emissions produced. The scheme will require significant changes in management thinking, and potential investment in energy efficiency measures.

The EU ETS is a core component in the UK government's efforts to move towards a low carbon economy. In its National Allocation Plan (NAP), the Government is proposing reductions of 16.3% by 2008, increasing to 20% by 2012 on 1990 levels. These targets are significantly higher than those set out by other countries in the EU, and critics are sceptical about whether they can be achieved. Certainly caps at this level would have a substantial impact on electricity prices in the UK, and could damage Britain's competitiveness on the international scene.

Reducing energy costs and therefore saving money is a key driver for business and the public sector to cut carbon emissions.

For more information on energy efficiency and energy savings please contact EnergyQuote on +44 (0)20 7605 2300.

Enhanced Capital Allowances

The Enhanced Capital Allowance Scheme provides up-front tax relief for businesses paying corporation tax or income tax that invest in energy-saving equipment. The technologies supported currently are:

Automatic monitoring and targeting equipment Boilers

Combined heat and power

Compressed air equipment

Heat pumps for space heating

Lighting

Motors

Pipe insulation

Refrigeration display cabinets and compressors

Refrigeration equipment

Solar thermal systems

Thermal screens

Variable speed drives

Warm air and radiant heaters

Products listed are energy efficient, resulting in significant long-term financial benefits. For more information on claiming your allowance, and to consult the energy technology list in full, please consult the ECA website: www.eca.gov.uk

New and renewable energy policy

The government is keen to foster the development of new and renewable energy in order to meet its Kyoto targets. As such it is offering investment into the research and development of new and renewable energy programmes. A government white paper, entitled ‘New and Renewable Energy prospects for the 21 st Century – Conclusions in Response to the Public Consultation' is available on the DTI website at www.dti.gov.uk/renew/condoc .

If you would like to find out more about our services
and how EnergyQuote could help you, please

Top