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Euro emissions report looked at cement issues

LETTERS

Sir, As one of the authors of the Carbon Trust report The European Emissions Trading Scheme: Implications for Industrial Competitiveness, I would like to respond to Mike Gilbert ('Cement Association blasts emissions report', Construction News, August 12).

Our overriding conclusion was that the UK cement industry would not be negatively impacted as a result of the introduction of the ETS.

Only a 1.5 per cent increase in cement prices is required by 2008 to offset the additional cost to the sector.This is before any consideration of the sector's ability to mitigate its exposure by reducing its emissions.

While I recognise the importance of Mr Gilbert's points that alternative fuel regulations and constraints affecting new plant impact the sector's ability to reduce its emissions, the sector is unlikely to lose out.

We used detailed economic modelling of the sector and a series of in-depth interviews.

Our work, contrary to Mr Gilbert's concerns, took into account the climate change levy and the influence of competition from outside the UK.

Michael Grubb, Associate director of policy for the Carbon Trust, London