Hot issues: manufacturing, materials, and environment unit newsletter. Issue 26: January 2007

National Skills Academy for Manufacturing launched

The new academy is one of a series set up by Government across sectors of industry. It will deliver courses designed for the first time by industry for industry, training 40,000 students a year by 2012. Some of the biggest names in British manufacturing Rolls Royce, Caterpillar, Ford, GKN, BAe Systems, Airbus UK, Corus, VT Group and Nissan are backing the project.

The national centre in Birmingham will join up with lead colleges in each region of England delivering courses under the National Skills Academy brand.

The Academy badge will be a stamp of quality training for employers the length and breadth of the country. Any college or training provider will be able to apply to put Academy courses on, or go into firms to deliver them. Accredited larger firms will be able to train staff at smaller firms.

Announcing the Academy at Warwickshire College in Leamington Spa Mr Darling said:

Raising skills has to be a national mission. That is why some of the best known manufacturers in this country are on board. They know what it takes to compete and win. They know 'good enough' doesn't work. That is why it is vital the training is designed by these winners for the winners of tomorrow.

The new Skills Academy for Manufacturing can be the production line for the next generation of highly trained, highly motivated manufacturing workers. The country needs them.

The first three regions are the West Midlands, the East Midlands and the North East. The other regions will come on stream by the end of 2007, and Scotland and Wales are due to be included early next year.

• Manufacturing accounts for 14% if GDP. Providing 3.7m jobs, half of UK exports and three quarters of business R&D.
• The UK automotive sector produced more than 1.6m vehicles in 2005, close to the historic peak of the 1970's and nearly twice the number produced in the early 1980's.
• Aerospace invested £2.7bn a year in R&D in 2005, with a turnover of over £22bn.

Lord Leitch's recent review of the UK's skill needs highlighted the critical importance of skills to people, business and the economy. He said if companies do not invest in higher level skills for their workforce then the country will be less competitive and people will find it ever more difficult to find and keep good jobs.

Manufacturing is one of the first three National Skills Academies to drive up the standard of industry training, improve productivity and tackle skills shortages across England.
The aim is to have up to 12 academies for different industries operational by 2008 and the Government is investing £90 million in the programme which will be delivered through the Learning and Skills Council working with employers and their Sector Skills Councils.

The aim is an employer-led, world-class National Skills Academy network to provide vocational education and training for school leavers and adults, tailor made to meet the specific needs of industry sectors and those who work in them. The first three are Financial Services, Construction, and Manufacturing.

Climate Change Projects Office

The Climate Change Project Office trade missions continue to enjoy success with the news that two multi-million pound contracts resulting directly from the mission to China in October last year, are due to be signed in the very near future. According to a recent World Bank report, UK companies now have a 45% share of the market for credits from project based activities. Many of these companies have been closely involved with the eight CCPO trade missions undertaken since November 2004.

Contact: ccpo.enquiries@dti.gsi.gov.uk

High Level Group on Competitiveness, Energy, and the Environment

The HLG is currently considering issues related to:

• Technology and innovation perspectives in the Energy Intensive Industries
• Environmentally harmful subsidies

The next meeting of the HLG will be held on 27th February 2007 and will make recommendations on the two work areas. We will provide a further update in the March edition.

High Level Group website http://ec.europa.eu/enterprise/environment/hlg/hlg_en.htm

For further information please contact: faith.quigley@dti.gsi.gov.uk

An Energy policy for Europe

A core energy objective for Europe is that the EU should reduce greenhouse gas emissions from its energy consumption by 20% by 2020, with an aim to increase this to a 30% reduction by 2020 and 60-80% by 2050 provided that other developed countries commit themselves to comparable emissions reductions.

The Review includes a ten-point energy Action Plan with a timetable of measures. A first package of measures is presented with the Action Plan. This includes:

• A report on the implementation by the Member States of the internal market of gas and electricity as well as the results of an enquiry of the state of competition in these two sectors;
• A Plan for Priority Interconnections in the electricity and gas networks of the Member States so that a European grid becomes a reality;
• Proposals to promote sustainable power generation from fossil fuels;
• A roadmap and other initiatives to promote renewables, notably biofuels for transport;
• An analysis of the situation of nuclear energy in Europe;
• A work sheet for a future European Energy Strategic Technology Plan.

The Energy Efficiency Action Plan which the Commission adopted on 19 October 2006 also forms part of the Action Plan. The Commission’s Communication “Limiting Climate Change to 2 degrees” (see next Hot Issues article) and the Strategic Review complement and reinforce each other.

The Commission will ask the European Council to endorse its proposals at its Spring Summit on 8/9 March 2007. A second Strategic Energy Review in two years time will report on progress.

European Commission proposals to cut emissions for the 21st Century

The Communication and the rest of the package of proposals will be considered by EU leaders at their Spring summit in Brussels on 8-9 March 2007.

We will keep you informed of Developments, including the UK’s position, following the EU Leaders March summit.

Contact: keith.avis@dti.gsi.gov.uk

Commission on Environmental Markets and Economic Performance launched

The new Commission on Environmental Markets and Economic Performance, jointly chaired by Defra and DTI, will review how the UK can make the most of the key opportunities that climate change and protecting the environment can present for wealth creation and employment growth.

Members from business, NGO’s, academia, trade unions and public sector organisations, will report to Government, making recommendations on how to further stimulate sectors that can make a significant contribution to environmental outcomes and productivity.

Trade and Industry Secretary Mr Darling said:

“The whole world must move to a low carbon economy. This green industrial revolution presents the opportunity for new goods, new services, new capital markets and new jobs.“

Environment Secretary Mr Miliband said:

“Every industry should become an environmental industry – and environmental principles must permeate beyond traditional environmental sectors.”

A message he echoed during a recent speech in India at Delhi’s Sustainable Development Summit.

Gas Supply

The Business Energy Forum met for the third time on 13 December 2006. This is a high-level group jointly chaired by the Secretary of State for Trade and Industry and Richard Lambert, Director General of the CBI. Its members include representatives from industry bodies including the EEF and the Energy Intensive Users Group. The main focus of the third meeting was on Government and Business promoting the Stern Review to European Counterparts, and an IEA presentation on medium term prospects for oil and gas supplies.

On 4 January 2007, the Met Office published its latest winter forecast (Dec 2006-Feb 2007). The main message on temperature is: for the rest of the winter, the Met Office continues to forecast that near- or above-average temperatures are the most likely outcomes. However, there is still an indication that the UK could experience an increase in the number of cold snaps with some snowfall, later in January and at times through February. For further details on the Met Office forecast please see the weblink below. The next monthly update is due on 6 February.

The market continues to respond to the need for more gas supply and storage by developing new infrastructure, listed below. These projects could increase GB’s gas import capacity by over 100mcm/day for this winter. The utilisation of facilities would however depend on technical and commercial factors, though so far this winter gas flows through Langeled and BBL pipelines have been above the estimates in the NG Winter Consultation Report.

• The new Langeled pipeline from Norway (officially commissioned on 1 October)
• Further expansion of the Belgium-GB Interconnector (completed on 1 October)
• The new BBL pipeline from the Netherlands to Bacton (first gas on 1 December)
• New LNG import project into Teesside (first cargo planned for mid February)
• Full availability of the new Humbly Grove storage facility in Hampshire

Fuel Switching – The Government is keen to ensure that large users of gas, who can reduce demand when prices are high by switching to alternative fuels, are enabled to do so. However, this must clearly be subject to consideration of the environmental impacts of such action. Further details on fuel switching can be obtained from the weblink below.

The Government is not expecting an emergency situation to occur this winter. However, as part of proper contingency planning, IGEM (Institution of Gas Engineers & Managers) has published “Guidance for large consumers in dealing with Natural Gas supply emergencies” IGE/GL/9, Communication 1724. It is available from IGEM either in hard copy or through the weblink below.

For further information, please contact: Terry Martin (terry.martin@dti.gsi.gov.uk) 

DTI Winter Energy Supply webpage – www.dti.gov.uk/energy/winter-supply/page32154.html

Met Office - www.metoffice.com/weather/seasonal/winter2006_7/index.html

Fuel Switching – www.dti.gov.uk/energy/winter-supply/fuel-switching/page21183.html 

IGEM “Guidance for large gas consumers in dealing with Natural Gas supply emergencies” weblink - http://www.igem.org.uk/f/IGE-GL-9.pdf

Emissions Trading Scheme

On 29 November the Commission announced their decision to accept the UK NAP, with a total cap of 246.2 MtCO2 per year during Phase II. Details of this decision, and decisions on other Member States’ NAPs can be found on the Commission’s website (see link below). Any important announcements leading up to the Final Allocation Decision will be sent to those on our Hot Issues circulation list in due course.

Focus is now turning to EU ETS post–2012. In November the European Commission published a report to the European Parliament and Council considering the functioning of the EU ETS and the review process (see link below). This report details priorities for the review based around 4 key areas of scope, harmonisation and predictability, compliance and enforcement, and linking with other schemes. In addition the Commission have published a number of reports which will inform the ongoing review, including the following:

• Report on international competitiveness
• Inclusion of additional activities and gases into the EU ETS
• Auctioning of CO2 emission allowances in the EU ETS
• The approach to new entrants and closures

These reports are available on the EU ETS section of the Commission’s website (see link below).

The UK welcomes the review and will be using stakeholder consultation responses (see link below) to develop our views and feed these into the Commission over the coming months.

European Commission Assessment of Phase II NAPs http://ec.europa.eu/environment/climat/ip_1650.htm

European Commission Report on functioning of the EU ETS http://ec.europa.eu/environment/climat/emission/review_en.htm

Commission EU ETS Review website http://ec.europa.eu/environment/climat/emission/review_en.htm

Stakeholder questionnaire on priorities for the EU ETS Review http://www.defra.gov.uk/environment/climatechange/trading/eu/future/review/questionnaire.htm

Contact: keith.avis@dti.gsi.gov.uk or faith.quigley@dti.gsi.gov.uk

Environmental Permitting Programme

Environmental Permitting Guidance will be replacing existing lengthy guidance for the waste management licence (WML) and pollution prevention and control (PPC) systems (except for activities regulated by local authorities where the existing General Guidance Manual will be updated to reflect the changes to the system) with a single, easy-to-read and concise piece of guidance.

The consultation closes on 11 April 2007

http://www.defra.gov.uk/corporate/consult/envpermitprog3/index.htm

EU Green Paper on Labour Law

The Green paper’s purpose is to start an open-ended EU-wide debate on how labour law impacts on labour market flexibility and how to facilitate new ways of working and promote employment. The output from the Green Paper will have a huge impact on EU level initiatives and policy direction.

Readers will be interested in this debate and will want to respond directly to the Commission. DTI will also be responding to the consultation - although not formally consulting separately - you are welcome to share your views with us.

Consultation closes on 31st March 2007.

Consultation Document: http://ec.europa.eu/employment_social/emplweb/news/news_en.cfm?id=189

DTI Contact: Neil.Bond@dti.gsi.gov.uk

Persistent Organic Pollutants (POPs)

This consultation seeks views on two issues:

• A draft UK National Implementation Plan for the Stockholm Convention on Persistent Organic Pollutants (including the UK Dioxins Action Plan)
• A draft UK Statutory Instrument on Persistent Organic Pollutants.

The draft National Implementation Plan (NIP) outlines how the UK currently meets the obligations of the Stockholm Convention. The NIP includes a Dioxins Action Plan which summarises actions taken so far to control unintentional emissions of POPs and outlines future research and initiatives which the Government intends to take forward.

The consultation closes on 19 March 2007

http://www.defra.gov.uk/corporate/consult/organicpollutant-plan/index.htm

Water Quality – Priority Substances RIA

The consultation closes on 16 March 2007

http://www.defra.gov.uk/corporate/consult/wfd-prioritylist/index.htm

Transfrontier Shipments of Waste

These reviews have been undertaken following changes to the EC Waste Shipments Regulation which will apply in July 2007. The purpose of this consultation is to enable interested organisations to provide their views on revised Transfrontier Shipment of Waste Regulations and the revised UK Plan for Shipments of Waste (the UK Plan), and the associated partial RIAs. The consultation will be of particular interest to those who notify shipments of waste to UK competent authorities, transport waste to or from the UK, prepare waste for shipment from the UK, and those who treat waste which has been shipped into the UK.

The consultation closes on 12 March 2007.

http://www.defra.gov.uk/corporate/consult/tfs-regs/index.htm

Building a Greener Future

The consultation closes on 08 March 2007

www.communities.gov.uk/index.asp?id=1505157

Environmental Goods and Services Markets and Innovation

The global market for environmental goods and services is worth $548bn and is set to rise to $688bn by 2010 and almost $800bn by 2015.

The Environmental Innovations Advisory Group (EIAG), which was tasked with tackling barriers to innovation in the environmental industries, has also published its first annual report “Bridging the gap between environmental necessity and economic opportunity”.

The report sets out analysis of the barriers to innovation in the UK environmental sector as well as solutions. It also sets out progress in bringing about change in a number of key areas such as procurement, regulation, finance, technology and skills.

 Both reports can be found at: www.dti.gov.uk/sectors/environmental/index.html

Waste

The waste Duty of care;
The registration of waste carriers; and
The registration and control of waste brokers.

Views are invited from all those with an interest in protecting the environment from the effects of waste crime and the illegal disposal of waste.

The consultation on the controls on the handling, transfer and transport of waste closes on: 6 March 2007

 http://www.defra.gov.uk/corporate/consult/waste-controls/index.htm

Environmental Liability Directive

The Directive is aimed at the prevention and remedying of environmental damage - specifically, damage to habitats and species protected by EC law, damage to water resources, and land contamination which presents a threat to human health. It is based on the polluter pays principle, i.e. polluters should bear the cost of remediating the damage they cause to the environment, or of measures to prevent imminent threat of damage. Polluters would meet their liability by remediating the damaged environment directly, or by taking measures to prevent imminent damage, or by reimbursing competent authorities who, in default, remediate the damage or take action to prevent damage.

The consultation document is available on the link below:

www.defra.gov.uk/corporate/consult/env-liability/index.htm

The deadline for comments is 16 February 2007.

Proposed Changes to the Patents Rules

There are three proposals for Change. Two proposals relate to the removal of provisions in the 1995 Rules which are incompatible with the efficient operation of the Patent Office’s recently-introduced system for electronic case-files for patent applications.

The third proposal concerns a change to the 1995 Rules which is necessary if the UK is to comply with the amended Regulations under the WIPO Patent Co-operation Treaty (“PCT”).

Consultation paper: http://www.Patent.gov.uk/consult-changepatentrules.pdf

Closing date: 7 February 2007

REACH

REACH is subject to the Co-decision process, whereby the Council (Member States) and the European Parliament first scrutinise the proposed regulation separately, and then seek to jointly agree a final package of provisions. The European Parliament delivered its First Reading of REACH on 17 November 2005. The Council achieved political agreement on 13 December 2005 under the UK Presidency (translated into a Common Position of the Council on 27 June 2006 following the standard legal-linguistic checks).

REACH is now well into its Second Reading with the European Parliament. The Parliament and Council are already close on many issues, but there is a key difference of approach over how REACH should encourage the substitution of substances of very high concern (e.g. carcinogens). The Parliament favours mandatory substitution where suitable alternatives exist, while the Council supports a more risk-based approach. The Finnish Presidency is currently holding a series of high-level Trialogues with the European Parliament and the Commission, aimed at securing a Second Reading deal by the end of the year. Should a Second Reading deal be achieved, REACH is likely to enter into force in April 2007. If a deal is not possible, REACH will enter a final Conciliation stage under the German Presidency, with entry into force then likely to be delayed until the second half of 2007.

Industry input into this next stage of the process is very much welcome, and we continue to work with the Metal industry REACH group to ensure views from the sector are adequately represented

Website: http://www.defra.gov.uk/environment/chemicals/reach/index.htm

Contact:  necs@defra.gsi.gov.uk.

Contact: Keith.avis@dti.gsi.gov.uk

HMRC Sets up Specialist Units for R&D Tax Credit Claims

The aim of these specialist units is to improve the handling of claims by concentrating the work in a smaller number of locations staffed by specially trained officers. This should lead to greater consistency from HMRC in dealing with claims and more certainty for companies making claims.

Further Details from http://www.hmrc.gov.uk/randd/special-units.htm

Global Harmonised System of Classification & Labeling of Chemicals (GHS)

During the consultation period (Which closed on 21 October 2006) The Health and Safety Executive (HSE) consulted widely among external stakeholders encouraging them to engage with the EC and respond on the proposed Regulation.

The non-confidential replies and comments from respondents, including the UK Government Response are available from www.hse.gov.uk/ghs.

Manufacturing Advisory Service (MAS)

MAS owes much of its success to the strong partnership between DTI, RDA s and other key stakeholders who provide access to free hands-on advice and assistance from professional experts. More than a third of firms have gone on to take up in-depth project work with the service at a subsidised rate, enabling them to achieve a vital competitive edge through adopting global best practice in manufacturing.

You can register with the national website to receive a regular e-newsletter in order to find out about recent news and forthcoming events involving MAS.

For further information about the services offered by MAS, go to the MAS national website www.mas.dti.gov.uk

or get in touch with your local MAS Regional Centre direct by calling the MAS helpline number 0845 658 9600.

DIRECTOR
Robert Sullivan
0207 215 1474
robert.sullivan@dti.gsi.gov.uk

Manufacturing

Energy and Environment Policy

Sector Knowledge

Central Team

Dean Thomas
Senior Policy Advisor
Environmental industries
020 7215 1283
Dean.Thomas@dti.gsi.gov.uk