UK Paper Industry Calls for U-turns in Manufacturing Policy: The UK’s Paper Industry still operates 50 mills and accounts for 25,000 jobs. It contributes significantly to the UK economy. It has reduced energy consumption and carbon emissions by over 30% since 1990. It has invested £10bns in state of the art equipment and Combined Heat and Power (CHP) and on-site biomass plants. Paper is now the most recycled of materials with a recycling rate of 73%.
However, government policy is acting as a huge disincentive to further investment and could result in the closure of many mills over the next decade.
Potentially the most damaging of the policies is the Carbon Price Floor, which comes into effect in 2013. At £16 per tonne it could cost UK Energy Intensive Industries more than twice the amount paid by our EU competitors.
