This follows a stringent independent verification process, which demonstrated that there was a further 4.4 per cent improvement in primary energy efficiency compared to the last milestone two years ago.
The CCAs were set up over 4 years ago and allow sector participants to earn partial rebate of the Climate Change Levy in return for meeting agreed energy improvement targets, and implementing the rigorous monitoring and systems required for accurate reporting. Compared to the 1990 baseline, the sector can now demonstrate a 33.5 per cent improvement in primary energy efficiency.
"The sector has done well to make these improvements, particularly as the original targets anticipated further savings from investment in CHP projects that have not materialised," said Graham Barnard, CPI director of business affairs.
"However energy costs are always important to paper companies, and the improvement measures taken have been so effective that last year we were able to agree with Defra (department of environment food and rural affairs) even tighter targets for future milestones.
"With the advent of the European Emissions Trading Scheme (EUETS), companies now have two different (and sometimes conflicting) regulatory drivers for energy management. We very much hope the Government will take the opportunity of reducing this complexity by giving companies in EUETS automatic rebate for the Climate Change Levy as soon as possible."
The Emission Trading Scheme is one of the policies being introduced across Europe to tackle emissions of carbon dioxide and other greenhouse gases and combat the serious threat of climate change.
The scheme, which came into force 1 January 2005, is designed to ensure that greenhouse gas emissions in the energy and industry sectors are cut at least cost to the economy and help the EU and its Member States meet their emission targets under the 1997 Kyoto Protocol.
Emissions trading involves the buying and selling of emission allowances between countries or firms that are obliged to mitigate their greenhouse gas emissions at a specified level. The EU ETS scheme facilitates this as a means of tackling emissions of carbon dioxide and other greenhouse gases and combat the serious threat of climate change. It allows governments to regulate the amount of emissions produced in aggregate by setting the overall cap for the scheme but gives companies the flexibility of determining how and where the emissions reductions will be achieved.
By allowing participants the flexibility to trade allowances the overall emissions, the theory is that reductions are achieved in the most cost-effective way possible.