Integrated Pollution Prevention and Control

The Group’s Permit to Operate contains a number of conditions concerning emissions to air, land, water and sewer. Accompanying the Permit issued by the Environment Agency are a number of Improvement Conditions with which the Group is required to comply in order to improve environmental performance. These include minimising the use of water, energy and raw materials. Such initiatives will be structured to providing frameworks to identify and eliminate costs and inefficiencies on an on-going basis.

Climate Change Agreement

James Cropper PLC is a signatory to the paper sector Climate Change Agreement (“CCA”) negotiated with DEFRA by the Confederation of Paper Industries.  Under the Agreement the Group receives partial exemption from the Climate Change Levy on its natural gas consumption, an 80% discount against the Levy attributable to imported electricity and exemption from Business Rates otherwise chargeable on our CHP plant.  In return, the Group is committed to a series of increasingly stringent energy use targets that take effect over milestone target periods, every other year, for the 10-year term of the Agreement. To date the Group has now exceeded all three of its CCA milestones targets for specific energy use per tonne of saleable product.

EU Emissions Trading Scheme

EUETS, a mandatory scheme for greenhouse gas emission allowance trading within the EU, was introduced in phases from 2005. It is one of the policies being introduced by the EU to tackle emissions of carbon dioxide and other greenhouse gases from a number of specific industrial activities. The Group’s power generation facilities became subject to this scheme as from 1 January 2008. In the calendar year 2007 the Group emitted 41,000 tonnes of carbon dioxide matching its EUETS allowance to emit 41,000 tonnes per annum. The Group’s investment programme will lead to a situation where emissions will be reduced further thus allowing the excess to be sold.