Business groups have criticised government plans to drastically cut the amount of harmful emissions produced by manufacturers, claiming the move will badly harm jobs and the competitiveness of UK firms.
As reported by Startups.co.uk last week, small manufacturers have been warned that they could be badly hit when Britain adopts the Emissions Trading Scheme (ETS) on 1 January 2005.
The ETS, which has already been implemented in other European states, aims to cap carbon dioxide emissions by setting companies a pollution quota and punishing those who exceed their limits.
However, business groups have warned that the system will badly harm the competitiveness of UK manufacturers, claiming that the proposed 20 per cent cut in emissions was far more than the 12.5 per cent reductions agreed under the international Kyoto environmental agreement.
The Energy Intensive Users Group (EIUG) said that the plans will force companies to seek business abroad, where costs will be lower.
Jeremy Nicholson, director of the EIUG, said: “These proposals are counterproductive – they will simply drive industry offshore and raise global emissions. The UK is not in the lead – we are isolated.”
Digby Jones, head of the Confederation of British Industry (CBI), said that the government must not be “cavalier” with UK competitiveness.
“Ministers should reconsider these proposals. At the very least they should promise not to press ahead without guarantees that all EU member countries will be just as tough,” he said.
