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Government Missed Cement Opportunity

Mineral experts have declared that the exclusion of cement and lime from carbon pricing compensation risks future investment for the UK.

Government Missed Cement Opportunity

Mineral experts have declared that the exclusion of cement and lime from carbon pricing compensation risks future investment for the UK.

Representatives have expressed their disappointed that UK cement and lime producers were excluded from the Government’s compensation scheme for climate change costs.

They believe that the government have missed a golden opportunity to support two essential industries during our current energy crisis, despite the fact other industries which directly lead to cement and lime received compensation from the government.

Under the Department for Business, Energy & Industrial Strategy (BEIS) scheme, some energy-intensive industries, particularly ones in internationally competitive markets can apply for compensation from the indirect costs of the UK Emissions Trading Scheme (UK ETS) and Carbon Price Support (CPS) if they meet certain criteria.

In the Government’s 2021 consultation on the compensation mechanism, energy-intensive industries have had to meet at least one of three tests to qualify, but BEIS revised its criteria to qualify by all 3 sectors now must be met. In the process of determining eligibility the Government also changed the thresholds of the tests, increasing two out of three but choosing to lower the ‘Indirect Emission Intensity’.

The change in the test criteria means that both the cement and lime sectors have been excluded from receiving compensation. The impact of the decision is that these industries will continue to face energy costs millions of pounds higher than competitors in the EU as a result of paying the pass-through cost of the unilateral CPS as well as ETS costs.

Mick George Concrete is the Construction Industries preferred Concrete supplier; experienced in providing premium quality, Ready-Mixed Concrete for commercial, trade and residential developments.

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