UK Climate Change Programme 2006 - JNCC - Defra

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44 CHAPTER FOUR Business In 2004, the business sector was responsible for carbon dioxide emissions of 60.5 MtC or around 40 per cent of the UK total. Emissions had fallen to about 12 per cent below 1990 levels by 2004 and we estimate that, including the expected impact of the new measures included in this programme, they could fall further, to almost 18 per cent below 1990 levels by 2010. Greenhouse gas emissions had fallen by about 28 per cent between the base year and 2004. We estimate that with the additional measures introduced in this Programme, they could fall further to 33 per cent below base year levels by 2010. The Government is committed to developing a clear policy framework that allows for longterm planning and investment in reducing emissions while ensuring a healthy and competitive business base is maintained. Business has already cut its greenhouse gas emissions significantly, but further reductions could be made cost-effectively. Independent evaluation by Cambridge Econometrics forecast full carbon savings from the climate change levy to be 3.7 MtC in 2020. In addition, measures introduced in the Climate Change Programme 2000 are estimated to save around 4.9 MtC in 2010. The main contributions are from the climate change agreements, the UK emissions trading scheme, the activities of the Carbon Trust, and the Building Regulations 2002 and 2005. Measures introduced through this programme will deliver additional carbon savings to 2010: • additional funding to allow for a significant expansion in the Carbon Trust’s Energy Efficiency Loans scheme for SMEs; • further measures to encourage SMEs to take up energy saving opportunities. Together it is estimated that these new measures will contribute an additional 0.2 MtC of carbon savings, bringing total savings to 5.1 MtC in 2010. Introduction 1. Business is a key determinant of the strength and momentum of an economy. However, increasing economic activity is putting greater pressure on our environment and natural resources. The business sector contributes the most to overall UK emissions. 2. Climate change needs to be tackled if we are to achieve long-term growth and prosperity. If climate change is not tackled it means that economic growth is not sustainable, and so it is essential that business adapts to the new conditions it faces. The task is to maintain economic growth in the short, medium and long-term at the same time as meeting the challenge of climate change. 3. Business’ commitment to tackling climate change is growing in the UK. Many firms recognise that action to reduce emissions can bring wideranging benefits including lower costs, improved competitiveness and new market opportunities. Energy-efficient alternatives can provide costeffective options for businesses. However, shortterm cost considerations and market failures can create barriers to investment. Where this is the case, the Government recognises the role of different policy instruments in overcoming these barriers. The decision to intervene needs to be evidence based and needs to take account of wider economic and social objectives. If a case for intervention is seen, the most cost-effective instrument – or range of instruments – should be used. 4. The Government is committed to developing a clear, flexible and stable policy framework that allows for long-term planning and investment in reducing emissions while ensuring that a healthy and competitive business base is maintained. The framework must also recognise the diversity of the business sector: emissions, energy intensity and the ability to respond to climate change vary sharply between commerce and industry, and between large and small firms.
Business 45 5. This section covers emissions from both the manufacturing and commercial sectors, and also from industrial processes and waste management. Business’ share of the emissions associated with energy supply is taken into account when estimating the effects of policies. Business use of transport is covered in the transport chapter. projected to be around 33 per cent below base year levels by 2010. Projections of greenhouse gas emissions from the business sector and the estimated effect of additional quantified measures, MtC 100 90 80 MtC 70 60 50 1990 1995 2000 2005 2010 2015 2020 Historical trend Baseline with measures projections Additional quantified measures Greenhouse gas emissions inventory and trends 6. In the base year, greenhouse gas emissions from the business sector (including those from its use of energy) were 97.2 MtC. In 2004, emissions from this sector were about 28 per cent below 1990 levels and they are projected to be around 33 per cent below base year levels by 2010, mainly because of fuel switching in the electricity supply industry, other fuel switching and improved energy intensity. Emissions are 7. Emissions of the other five greenhouse gases from the business sector have reduced significantly. More details are given below and in annexes C to E, but the key points to note are: • the increased collection of landfill gas for energy recovery and environmental control; and • a large reduction in N 2 O from adipic acid manufacture and in HFCs from HCFC-23 manufacture due to introduction of abatement equipment. Greenhouse gas emissions from business, MtC Gas Base year 1990 1995 2000 2004 2010 2015 2020 Carbon dioxide 68.8 68.8 61.2 60.3 60.5 56.4 58.0 58.1 Methane 14.8 14.8 12.8 8.6 5.7 4.6 4.1 3.8 Nitrous oxide 9.0 9.0 6.1 2.6 2.0 1.9 1.9 1.9 HFCs 4.1 3.1 4.1 1.9 1.7 1.9 1.9 1.7 PFCs 0.1 0.4 0.1 0.1 0.1 0.1 0.1 0.1 SF 6 0.3 0.3 0.3 0.5 0.3 0.4 0.3 0.3 Total 97.2 96.4 84.7 74.1 70.3 65.2 66.3 66.0 Change from base year levels -12.9 -23.8 -27.7 -32.9 -31.8 -32.1 Note: the percentage changes and emission estimates may differ slightly due to rounding
Page 1: Climate Change The UK Programme 200
Page 4 and 5: ©Crown Copyright 2006 The text in
Page 6 and 7: iv Foreword We will work with our E
Page 8 and 9: 2 Contents Section 5 - Annexes 00 S
Page 10 and 11: 4 Executive Summary Recent experien
Page 12 and 13: 6 Executive Summary In the agricult
Page 14 and 15: 8 CHAPTER ONE What is climate chang
Page 16 and 17: 10 What is climate change and why d
Page 22 and 23: 16 International framework for acti
Page 30 and 31: 24 CHAPTER ONE UK emissions invento
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Page 34 and 35: 28 UK emissions inventory and proje
Page 36 and 37: 30 CHAPTER TWO Strategy to reduce U
Page 38 and 39: 32 CHAPTER THREE Energy supply The
Page 40 and 41: 34 Energy supply Energy policy 6. T
Page 42 and 43: 36 Energy supply Electricity from r
Page 44 and 45: 38 Energy supply grid. While these
Page 46 and 47: 40 Energy supply phase allocations
Page 48 and 49: 42 Energy supply 53. Carbon abateme
Page 52 and 53: 46 Business Existing measures Carbo
Page 54 and 55: 48 Business • fuel used by good q
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Page 58 and 59: 52 Business long-term strategy to t
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94 Agriculture, forestry and land m
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100 Agriculture, forestry and land
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102 Agriculture, forestry and land
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104 CHAPTER EIGHT Public sector In
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106 Public sector Sustainable Energ
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108 Public sector new unfunded burd
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110 Public sector 24. The Governmen
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112 Public sector Government Estate
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114 Public sector 48. The Higher Ed
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116 Public sector THE ENCODE The De
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118 Stimulating action by individua
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124 CHAPTER TEN Bringing it all tog
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126 CHAPTER ELEVEN Monitoring and r
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SECTION 3 Adapting to the impacts o
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Adaptation 131 • increased subsid
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Adaptation 133 We will analyse stak
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Adaptation 135 additional market ri
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Adaptation 137 Climate change partn
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Adaptation 139 the UK Presidency of
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Adaptation 141 Conclusions 45. It i
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144 CHAPTER ONE Scotland The Scotti
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146 Scotland The review of the Scot
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148 Scotland carried out around 600
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150 Scotland Fuel poverty 28. Polic
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152 Scotland Planning Building Regu
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154 Northern Ireland Northern Irela
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156 Northern Ireland • by 2012 at
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158 Northern Ireland view to ensuri
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160 Northern Ireland network. The i
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162 Northern Ireland increase in th
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164 Wales The impacts of climate ch
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166 Wales CHP 11. Health estates in
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168 Wales conserved and enhanced. C
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170 ANNEX A Emissions projections C
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172 Emissions projections Methodolo
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174 ANNEX B Carbon dioxide Key fact
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176 ANNEX C Methane Key facts Metha
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178 ANNEX D Nitrous oxide 1. Nitrou
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180 ANNEX E HFCs, PFCs and SF 6 Key
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182 HFCs, PFCs and SF 6 HFC, PFC, S
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184 Carbon sequestration Greenhouse
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186 Carbon sequestration future rat
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188 ANNEX H List of greenhouse gase
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190 ANNEX I Review of the 2000 Clim
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192 Glossary of terms HCFC Hydrochl
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Published by TSO (The Stationery Of
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