Not only has the UK paper making industry succeeded in achieving its energy saving goals but it exceeded expectations by 2.6%.
Despite being a voluntary arrangement, paper mills enthusiastically participated in the Climate Change Agreement (CCA) scheme created in 2001. Set up as an incentive for mills to be more energy efficient, the scheme granted partial relief from the Climate Change Levy (CCL).
David Morgan, the energy data manager for the Confederation of Paper Industries (CPI) declared, “Ultimately the main driver of energy savings is a cost driver. If you know what you’re paying and you know you can save 10% investing in a piece of kit that saves 10% a year and pays out within two years then you might consider investing”.
All 45 UK paper mills were instructed to achieve a 7.1% improvement yet they have notably overachieved by becoming 9.7% more efficient than they were in 2008. However, those mills that do not achieve the CCA target set by the CCA are offered a buyout clause that allows them to remain in the scheme. Conversely, if they refuse to pay the fee they are removed from it and are no longer entitled to receive the partial relief.
Moreover, Morgan states “You’d think the big well-funded companies may be better but we’ve had a look over the years and that’s not the case. Smaller companies will pay more proportionally for energy than larger companies so the incentive for a smaller company to save energy is actually higher.”
The agreed energy saving goal for 2017-2018 has been set at 10% higher than the 2008 target.