Climate change legislation

EU Emissions Trading Scheme (EU ETS) 

The next phase of the EU ETS is due to begin in 2013 and Tarmac is working with EU and UK Government to encourage adoption of appropriate rules. Free allocations are being phased out and participants will have to purchase an increasing proportion of allowances via auctions. This has the potential to significantly impact manufacturing costs but does not impact non-European competitors. Transport costs into the EU may be lower than the increase in manufacturing costs and this will result in so called 'carbon leakage' i.e. the displacement of EU production to non-carbon constrained countries with no overall reduction in carbon dioxide emissions. Provisions aimed at addressing the carbon leakage problem are being developed as part of the new rules. Tarmac is working with EU and UK Government to encourage adoption of adequate rules to manage the risk of carbon leakage for sectors like cement and lime.

Climate Change Agreements (CCAs) 

These are energy reduction targets set by Government and Tarmac is engaged with the UK Government consultation on rules for extending CCAs to 2017.

Carbon Reduction Commitment (CRC) – The CRC is an emissions trading scheme that aims to deliver carbon savings in large, non-energy intensive organisations. The scheme will begin in April 2010. Tarmac is liaising with Government and responding to consultations on the scheme rules.

See more on climate change in our Sustainability section.