CBI responds to new EU emissions targets

The Confederation of British Industry (CBI) has responded positively to new climate change targets and amendments to the European Emissions Trading Scheme (ETS), announced yesterday by the EU.

The UK targets include cutting emissions from non-ETS sectors by 16% against 2005 levels and having 15% of all British energy produced from renewable sources by 2020.

"Businesses support the bold lead that the EU is taking on climate change," said CBI director-general Richard Lambert. "A robust cap for emissions, while challenging, will help create the effective carbon market that firms need to plan and invest in new, greener, technologies."

"However, we have to cut emissions, not shift them around the planet by undermining energy-intensive industries in Europe and discouraging future investment into the continent," he added.

Mr Lambert also said the CBI was pleased that the EU Commission has recognised the threat of this effect, described as "carbon leakage". He argued that acknowledging this would not mean heavier industries got an "easy ride", instead giving them more opportunity to adapt.

He concluded: "Effort to cut emissions must be shared across the whole economy. The UK needs more renewables but the target is daunting and costly. The proposal for an EU renewable trading scheme is worth exploring but [it is] not a panacea."