Energy intensity of installations is being considered to allow entry of those installations currently outside the CCA scope due to the 50MW.The Association has been arguing for a widening of the Climate Change Agreements (CCA) to all manufacturers. The Treasury completed exploring options for redefining the criteria for energy intensive sectors to bring in other energy intensive sectors currently outside the scope for climate change negotiated agreements.

Following a consultation on expanding the eligibility criteria for Climate Change Agreements on the basis of Energy Intensity Threshold Values, in his Budget statement, the Chancellor set a threshold value of 12% of production value, with a 3% lower threshold for industries which can demonstrate particular issues of global competitiveness.

European Union Legislation

Review of the Working Time Directive and the UK’s Opt-out

At a meeting of Employment Ministers no agreement was reached on the Commission’s revised proposal following the vote in the European Parliament to dispense with the UK’s opt-out. This means that the UK’s opt-out remains. Amongst those supporting retention of the opt-out were Ministers from Germany, Poland, Austria, Hungary, Malta, and Cyprus. Opposition to the opt-out was led by France and included Belgium, Sweden, Spain, Greece, Finland, Lithuania and Hungary. The issue now returns to Parliament and the debate is likely to continue into 2006.

The Association welcomes the stand made by the UK Government in Council and hopes that it is able to retain the support of the current blocking minority throughout the protracted discussions which inevitably lay ahead.

Construction Products Directive

Over the next few years some 400 new harmonised European Standards for construction products will be released, replacing National Standards. This is part of the Construction Products Directive, designed to allow a single market in these products.

A range of products now have harmonised standards and can be CE marked. More are being added as standards are completed. The process is currently being challenged by the actions of a number of delegations, particularly Germany, which state that the standards do not meet all their regulatory requirements. The UK position, supported by the Association, is that Member States should have advised CEN of their requirements at the beginning of the standardization process, not wait until the end and then veto standards. There remain a number of standards where Member States are maintaining national requirements, which is illegal. Where companies are willing to make formal complaints, the Association will support them.

The Commission is now working on a review and possible revision of the CPD. Consultants are carrying out a study on the CPD and its effect. Any changes would come into effect around 2008.

EU Chemicals Policy

The European Council & Parliament have begun debating the REACH (Registration, Evaluation and Authorisation of chemical substances) proposal and in particular, the joint UK & Hungary joint proposal for 'one-substance, one-registration'. The Regulations will have an impact on construction product manufacturers both as producers and as downstream users since the scope of the regulations will include a wide range of substances including cement & steel. The Association supports the UK-Hungary proposal but has some concerns with issues regarding commercial confidentiality, mandatory consortia and cost-sharing which have not yet been resolved. The Association is keen to see the scope narrowed to avoid duplication with other existing Directives, a risk rather than volume based approach used for registration, and exclusion of wastes from the scope of the proposal.

Integrated Product Policy

The Commission has adopted its long-awaited Communication on Integrated Product Policy (IPP) favouring a voluntary approach and multiple stakeholders' consultation over concrete legislative measures. The Communication outlines a two-phased strategy to implement IPP aiming at:

The Commission will in parallel focus its action on some products that are environmentally damaging to develop a methodology for identifying these products in co-operation with stakeholders. The Commission will issue a practical handbook on best practice with Life-Cycle Assessment (LCA) and a discussion document on the need for product design obligations on producers in 2005. The Association, through its European organisation, is liaising directly with the Commission to develop this Policy

EU Emissions trading scheme

The Scheme commenced in January 2005. The Government's National Allocation Plan which was submitted in November 2004 was rejected by the Commission and therefore the Government has had to set allocations based on its draft April 2004 Plan which was based on 20 million tonnes less of allowances.

The UK Government has however launched legal proceedings against the Commission for rejecting its November 2004 Plan.

In addition, industries have faced considerable hikes in gas and electricity prices of up to 40% in recent months which have added to their concerns of being competitively disadvantaged in comparison with their European counterparts. The Association is continuing to press Government to ensure the second phase discussions are started as early as possible and that harmonisation of definitions are adopted across Member States. Government must also ensure that it does not set tougher targets than needed under the Kyoto agreement to ensure a level playing field under this Scheme.

Other areas of interest:

Packaging Waste

Waste Electrical and Electronic Equipment Directive

Environmental Liability

Water Framework Directive

Energy Policy Review

Energy Performance in Buildings

Physical Agents Directive

For information on all of the European legislation which the Association is currently monitoring please download a copy of our latest edition of European Notes.