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CPI has responded in detail to Government’s consultations on the CRC scheme which starts in April 2010. Because the largest energy users in the paper industry (the paper mills) are already in the sector's Climate Change Agreement (CCA) the companies in whose name the CCAs are held will be exempted from CRC. Details of how CCA members go about claiming exemption from CRC will be known in early 2010. Some of our members will be fully eligible for CRC depending on their energy consumption and corporate structure, but we will not know to what extent until detailed electricity consumption data has been collated. It is clear that most CPI members - whether in a CCA or not - will have to register for CRC and provide energy consumption data to the Scheme Administrator in the Registration Period which begins in April 2010. Information updates will be sent direct to Members as issues are clarified, and a seminar for CPI Members is to be held in February 2010.
CPI believes CCAs have been a great success for the environment and have helped the paper industry make significant energy efficiency improvements and carbon emission reductions. Government has announced the New CCA which is to replace the existing CCA for the years 2012 to 2017. CPI has responded to DECC's formal consultations on New CCA and has had several meetings with Government on the subject. We are now preparing a response to the final consultation published in December 2009 and will be developing plans to agree appropriate targets for mills under New CCA.
CPI has been heavily involved with the 43 paper mills in EU ETS by advising them on steps needed to comply with the Environment Agency’s rigorous monitoring and reporting procedures, and by arranging and coordinating annual verification activities. CPI has also continued its lobbying and dialogue with Government officials and experts from other industries, and is participating in working groups to help the UK Government finalise its approach to Phase III of the scheme which starts in 2013. The pulp and paper sector has been recognised by the Commission as at risk of “carbon leakage” and will therefore get a degree of free allocation of allowances in Phase III – these allocations will be based upon industry-specific benchmarks which are being developed by the Commission's consultants Ecofys and which will be finalised in the first half of 2010.
CPI has commissioned a “Fate of Chemicals” project which provides a basis in science for assessing the likely components and effects of (a) low concentration paper mill discharges to the environment and (b) process residues being taken up by products which are later recovered and recycled. The extent of the environmental risk these present have been assessed using established risk management principles. The project will provide the industry and its suppliers with background information to enable them to respond to regulator requirements such as those under Pollution Prevention and Control (PPC) legislation. Chemical data from the participating mills and five of the industry's major chemicals suppliers has been collected and analysed and a final report has been submitted to the Environment Agency for their consideration.
CPI supports the aims of REACH which are to protect human health and the environment, to reduce needless animal testing and to improve the transparency of properties of chemicals; we also approve of the streamlining of legislation which will result. The main impact on the paper industry in the UK will be in terms of its use of industrial chemicals rather than in terms of any production of REACH-notifiable products. Our European trade association, CEPI (Confederation of European Paper Industries), has produced detailed industry guidance on REACH. Briefings have been given to paper mill staff and they have been encouraged to talk to their chemicals suppliers to ensure the uses to which mills put chemicals are registered as part of the REACH process.
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CARBON REDUCTION COMMITMENT