Hot issues: manufacturing, materials and environment unit newsletter. Issue 29: July 2007

Ministerial responsibilities announced at the Department for Business, Enterprise and Regulatory Reform

THE RT HON JOHN HUTTON MP: SECRETARY OF STATE FOR BUSINESS, ENTERPRISE AND REGULATORY REFORM

Overall responsibility for the Department.

THE RT HON STEPHEN TIMMS MP: MINISTER OF STATE FOR COMPETITIVENESS

Responsible for enterprise, growth and business investment, strengthening regional economies, Small Business Service including business support simplification, business sectors (e-commerce, communications and information industries, bioscience, chemicals, pharmaceuticals, shipbuilding, construction, automotive, manufacturing, creative industries, retail, steel), corporate governance, Companies Act implementation, Companies House, corporate social responsibility, general oversight of the Shareholder Executive, specifically the Industrial Development Unit.

SIR DIGBY JONES: MINISTER OF STATE FOR TRADE PROMOTION AND INVESTMENT (jointly with FCO)

Responsible for UK Trade and Investment.

PAT MCFADDEN MP: MINISTER OF STATE FOR EMPLOYMENT RELATIONS AND POSTAL AFFAIRS

Responsible for employment relations, ACAS, skills, postal policy and the Royal Mail and Post Office portfolio of the Shareholder Executive and the Insolvency Service (including companies investigations).

MALCOLM WICKS MP: MINISTER OF STATE FOR ENERGY

Responsible for energy policy, sustainability and the environment, security of energy supply, fuel poverty, nuclear security, WEEE Directive, coal health claims unit, asbestos claims, the energy portfolio of the Shareholder Executive, export controls and Export Credits Guarantee Department.

LORD DRAYSON: MINISTER OF STATE FOR BUSINESS, REGULATORY REFORM. Also an MOD minister.

Aerospace, marine and defence business sectors, Business Council for Britain, Better Regulation Executive, Better Regulation within BERR.

GARETH THOMAS MP: PARLIAMENTARY UNDER SECRETARY OF STATE FOR TRADE AND CONSUMER AFFAIRS. Also a DfID minister.

Responsible for Trade Policy (a shared BERR/DfID responsibility), EU competitiveness and the Single Market, Services Directive, consumer affairs and competition issues.

Year Two for the Waste Protocols Project

Plans to reduce red tape and make it easier to turn millions of tonnes of common types of industrial and commercial waste, such as steel slag and old plasterboard, into useable new materials were announced on 31 May by the Environment Agency and WRAP (Waste & Resources Action Programme).

Five waste streams were selected to be the focus for the second year of the Waste Protocols project (2007/08), a partnership project between industry, the Environment Agency and WRAP. The Project will make the waste easier to recycle and reuse.

Martin Brocklehurst, Head of External Programmes for the Environment Agency:

"According to industry figures, it currently costs them around £150m each year to landfill these five types of waste.

"The Waste Protocols Project will look at the current environmental risk posed by the five type of waste chosen today and wherever possible remove the need for companies to hold the permits and licences that they need.

"Part of our work is to set out an agreed standard for the treating and handling of a type of waste. If these are followed by the businesses that produce or reprocess the waste it gets rid of the "waste" tag, making the waste derived products more marketable and attractive to buyers."

By helping businesses and companies sell on their waste products, the Waste Protocols Project will cut down the tonnes of waste sent to landfill each year and associated green house gas emissions, whilst also reducing their costs. This is obviously good news, especially for a waste such as gypsum found in old plasterboard which can create environmental problems when it ends up in a landfill.

The five waste streams selected to go forward as part of the Waste Protocol project are:

• steel slag from steel manufacture, which can be reused in construction and building materials and as an agricultural fertiliser,
• gypsum from waste plasterboard which can be used to make new plasterboard and in cement products,
• incinerator bottom ash which is made up from glass, porcelain, brick, gravel, sand, slag and ash from household waste that is burnt in incinerators, and can be used as aggregate in construction materials.
• paper mill ash which is produced when sludge from paper making is burnt for energy recovery and the ash can be used as an aggregate.
• uncontaminated top soil from greenfields and development sites can be reused on a wide range of horticultural and leisure sites such as parks, golf courses and football pitches.

The five waste types were chosen by the Project from a shortlist of eight nominated by business and industries. Applicants were asked to provide information about what the waste is like, how much of it is currently being produced, how much the waste costs to dispose of and how much it’s worth once it has been recycled.

In addition, the Project will also work on the preparation of a standard to cover anaerobic digestate, which is produced from a wide range of source segregated organic substances such as food waste. Anaerobic digestate can be used as a replacement fertiliser.

WRAP’s Director of Organics Dr Richard Swannell commented:

"Earlier this year we produced the first Quality Protocol, for compost which allowed producers to create a type of compost which is no longer classed as a waste, making it a more attractive product to those who buy it."

"This first protocol is testament to what is achievable through the collaborative working approach shown by the Environment Agency, WRAP business and industry. The five wastes we have announced today will go some way in helping reduce the amount of waste disposed in landfills every year as well as helping to create valuable products."

Ten different wastes were the focus of the first year of the project. Work is on-going but the waste streams included:

• Flat glass from windows and windscreens which can be recycled into items such as new flat glass, filtration media, and an additive which makes paint reflective.
• Rubber crumb and shred from old tyres which can be used on golf courses and other sport pitches as well as asphalt surfaces.
• Plastics from construction and demolition projects such as PVC window frames and plastic gutters which can be recycled into an incredible range of products from pallets to bin bags.

The Waste Protocols Project is a joint project between WRAP and the Environment Agency funded by Defra’s Business Resource Efficiency & Waste (BREW) programme. The project was launched in May 2006.

UKTI – Advanced Engineering Sector Advisory Board (AdESAB)

For further information please contact:
Brian Greenwood (MME) brian.greenwood@berr.gsi.gov.uk who represents DTI Business Relations on AdESAB, or

Janet Tingle
Head of Engineering, Advanced Engineering Sector
UK Trade & Investment
Room 26, 6th Floor, Tay House, 300 Bath Street, Glasgow, G2 4DX
T: + 44 (0)141 228 3617
F: + 44 (0)141 228 3627
janet.tingle@uktradeinvest.gov.uk

EnginEurope

The EnginEurope report, highlighted in the last Hot Issues newsletter, was launched on 29 May 2007 in Brussels and covers issues such as intellectual property rights, market access, research & innovation and skills that all impact on mechanical engineering. Any comments or views from industry on the report and its conclusions/recommendations are most welcome and should be sent to Brian Greenwood.

The report is available on the Commission’s Europa website

http://ec.europa.eu/enterprise/mechan_equipment/engin/study.htm

For further information please contact: Brian Greenwood (MME) brian.greenwood@berr.gsi.gov.uk

High Level Group on Competitiveness, Energy, and the Environment (HLG-CEE)

International Conference: Towards a Low Carbon Economy

The HLG-CEE is organizing an international conference on how competitive advantages of a transition to a low carbon global economy can be achieved. The Conference will take place in Brussels on 27 November. The final format is still to be decided, but the intention is that the conference will enable business and non-governmental organisations to complement the United Nations process of agreeing a global greenhouse gas emissions reduction.

The HLG-CEE was established in February 2006 with a two year mandate. Its formal work concludes with the conference in November. The Group is comprised of European Commissioners from Enterprise, Energy, Competition and Environment. It also has senior board level representation from some of Europe’s major industries and Non-Governmental Organisations. The Group also has cabinet level representation from the UK, Germany, Portugal, Austria and Finland.

The role of the Group is to concentrate on increasing Europe’s Competitiveness, securing energy and other resource supplies and advising on how Europe can make the transition to a low carbon economy without damaging the other two objectives. It is an advisory Group which produces reports containing recommendations; these are published on the Group’s website. The impact of the Group is wide ranging and its recommendations can be seen reflected in the Energy and Climate Change package and the forthcoming review of industrial policy.

In addition to examining how to engage the international community into taking action on climate change, the Group is also investigating better regulatory approaches for energy intensive industries and its findings should become known in the Fifth Report in November.

Emissions Trading Scheme

The EU Emissions Trading Scheme is a community-wide scheme established for trading allowances to cover the emissions of greenhouse gases from permitted installations. Along with a number of other sectors, steel production is captured by the scheme, as are any combustion plants that have an aggregated thermal input of over 20MW. Phase I of the Scheme runs from 2005 to 2007 and Phase II from 2008 to 2012.

The European Commission (EC) is currently undertaking a review of the scheme to look into ways of improving the scheme post 2012. They have held stakeholder meetings with representatives from Member States, industry and NGOs, to discuss their priorities for the review, namely: scope; robust compliance and enforcement; harmonisation and increased predictability; and linking to other trading schemes around the world. These meetings have now concluded and the Commission will now be developing and drafting a legislative proposal which is expected to be published at the end of 2007. Reports from the stakeholder meetings, as well as economic analysis commissioned by the EC is available on their EU ETS Review website (see link below).

Following an informal consultation with stakeholders on key priorities in the spring, a further formal consultation is planned after the publication of the Commission’s legislative proposal at the end of the year.

Work is also continuing on the proposed inclusion of aviation into EU ETS. Responses to the March to June 07 consultation will help develop a UK negotiating position as the proposal progresses through the various legislative stages. More information on aviation inclusion in the EU ETS can be found on DEFRA’s website (see link below).

European Commission EU ETS Review

http://ec.europa.eu/environment/climat/emission/review_en.htm

DEFRA website: Aviation and the EU ETS

www.defra.gov.uk/environment/climatechange/trading/eu/future/aviation/index.htm

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

Government Response to the Gas Priority Users Consultation

On 27th July last year the Government consulted on the Gas Priority Users Arrangements. The consultation sought views on proposals to update the arrangements for ensuring that priority users retain gas supply in the event of gas shortages. The proposals

The Government response to this consultation has just been published and is available from the Department’s website below:

www.berr.gov.uk/consultations/page32587.html

The main conclusions are:

• We will extend Category C to include sites where, as a result of interruption, there would be consequential plant damage exceeding £50m to another site.
• We have acknowledged the support from industry for a mechanism for reduction of gas demand rather than cessation, in a gas deficit emergency. We have established a Task Group that will assess the feasibility of pursuing options for reduction rather than cessation for large industrial customers.
• We also believe there may be merit in giving consideration to raising the threshold of 25,000 therms per annum below which customers are not exposed to potential involuntary interruption (firm load shedding). The Task Group will work with the NEC Safety Forum on this issue
• We propose that consideration should be given to merging Category A and B priority user status, as possible wider market reform (Exit Reform) led by Ofgem, could lead to changes in the market provision of interruptible contracts.
• Hospitals and care homes are still protected as before, and we have taken action to improve administrative arrangements, and to ensure that priority lists are up to date.
• We considered whether priority status should be extended to the food and drink sectors and their supply chains. We concluded that extending priority status to businesses in such a large, diverse and interdependent sector would be impractical and that any benefit from a reduced risk of gas supply interruption to these sectors would be outweighed by the adverse impact on safety overall.

Consultation on the Environmental Permitting Programme: draft revision of the General Guidance Manual

www.defra.gov.uk/corporate/consult/epp-guidance/index.htm

Carbon and Sustainability Reporting within the Renewable Transport Fuel Obligation

www.dft.gov.uk/consultations/open/rtforeporting/

Simplifying Business Support

www.berr.gov.uk/consultations/page40113.html

Consultation on the interpretation of the definition of municipal waste used in the Landfill Allowance Trading Scheme (LATS) in England

It is clear that there is still a level of uncertainty about the interpretation of the definition of municipal waste used in the Landfill Allowance Trading Scheme. Some local authorities are concerned by the apparent difference between the practical definition used in the Government’s guidance and the legal definition set down in the Waste and Emissions Trading Act 2003.

This consultation puts forward proposals to amend the definition of municipal waste to resolve the apparent tension with the Government’s interpretation.

The Government is seeking views from interested parties in England, particularly waste disposal authorities and their representative organisations.

www.defra.gov.uk/corporate/consult/landfill-ats/index.htm

Consultation Policy Review

Please share your views with the Cabinet Office either by submitting a formal, written response to the questions in the Effective Consultation: asking the right questions, asking the right people, listening to the answers document or by posting comments on the “Have Your say” page.

The consultation closes on: 28 September 07

Consultation on the implementation proposals of the Carbon Reduction Commitment (CRC)

In the Energy White Paper 2007, the Government announced its intention to consult on the detail of how the proposed UK Carbon Reduction Commitment (CRC) can best be implemented. This consultation invites views on how Government, including the Devolved Administrations, should implement the UK CRC, in order to secure the required emissions reductions.

Key issues for this consultation include:

• The proposed definition of a CRC organisation
• Coverage of specific activities and emissions
• Design of the auction and CRC league table
• Monitoring, reporting, audit and penalties

www.defra.gov.uk/corporate/consult/carbon-reduc/index.htm

Fourth Environmental Permitting Programme Consultation on Government Guidance for EU Directives and Waste Technical Competence

Environmental Permitting Guidance will be replacing existing lengthy guidance for the waste management licensing (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 an easy-to-read, concise piece of guidance.

It will be a simple, single reference point explaining how the new, streamlined Environmental Permitting Regulations work and, where possible, how they will be implemented.

This consultation provides the rest of the Government guidance package. It is seeking views on draft Government guidance on the requirements of EU Directives covered by EPP and on proposals for assessing technical competence of permit holders with waste operations.

www.defra.gov.uk/corporate/consult/envpermitprog4/index.htm

Homes for the future: more affordable, more sustainable - Housing Green Paper

www.communities.gov.uk/index.asp?id=1511890

The future of the Code for Sustainable Homes - Making a rating mandatory

The Code measures the sustainability of a new home. It went live in England as a voluntary standard in April 2007. This consultation document follows on from the positive response received to Building a Greener Future: Towards Zero Carbon Development, where we asked if rating against the Code should be mandatory. This consultation document explores this in more detail and seeks views on:

• making a rating against the Code mandatory for new homes
• the connection between the Code and Energy Performance Certificates
• using Home Information Packs (HIPs) as the mechanism for making the Code rating available to prospective buyers
• when DCLG should update the Code
• the future content of the Code, including introducing minimum standards for Lifetime Homes.

www.communities.gov.uk/index.asp?id=1511885

Consultation on managing radioactive waste safely: a framework for implementing geological disposal

Following from the commitment to consult on how implementation of geological disposal of higher activity radioactive waste can be taken forward, the UK Government and the Welsh and Northern Irish devolved administrations have published a framework for the long term management of higher activity radioactive waste.

The Government is seeking views not only on the technical aspects of developing a disposal facility, but how we can engage most effectively with those communities that might have a potential interest in hosting the facility.

The Future of the Wool Textile Industry Export Promotion Levy

Proposals for amendments to The Environmental Protection (Controls on Ozone-Depleting Substances) Regulations 2002 (SI 2002 No 528) and The Ozone-Depleting Substances (Qualifications) Regulations 2006 (SI 2006 No 1510)

The ozone layer protects all living things from harmful radiation from the sun. The Montreal Protocol is an international agreement that has led to successive cuts in production and consumption of ozone-depleting substances. EC ozone legislation gives effect to these requirements and in some ways goes beyond those international requirements. SI 2002 No 528 created offences and penalties for failure to comply with the EC legislation and provided enforcement powers. The proposed amending Regulations are intended to:

• Set requirements for persons intending to fumigate with methyl bromide for quarantine or pre-shipment purposes to obtain prior authorisation from port health authorities and local authorities;
• amend the powers currently provided for enforcement of the obligations in EC Regulation 2037/2000 on substances that deplete the ozone layer so as to provide additional enforcement powers for the Environment Agency, the Scottish Environment Protection Agency and local authorities and to remove references to any functions to be exercised by the Health and Safety Executive;
• apply the relevant provisions of the amended SI 2002/528 to offshore oil and gas installations;
• Set new offences and penalties in relation to failure to supply information/records about halon exports and production/use of bromochloromethane in breach of EU/international bans;
• provide powers for the Secretary of State to require persons to dispose of improper exports of a controlled substance, a product or equipment and for it to be an offence for failure to do so.
  

These Regulations will be applicable to England, Scotland, and Wales (including offshore oil and gas installations which fall within the remit of the BERR) and in relation to importation, in Northern Ireland. Separate Regulations will be issued by the Department of the Environment in Northern Ireland.

The proposed amendment to the Ozone Depleting Substances (Qualifications) 2006 makes a minor addition in relation to fire protection qualifications.

www.defra.gov.uk/corporate/consult/ozone/index.htm

Proposals for offences and penalties and enforcement in relation to EC Regulation 842/2006 on certain fluorinated greenhouse gases

Invites views on proposed offences and penalties Regulations applicable to Great Britain that carry forward the implementation of EC Regulation 842/2006 on Certain Fluorinated Greenhouse Gases.

Key obligations in the Regulation will apply in the EU from 4 July 2007. Member states are required to put in place offences and penalties for failure to comply with the Regulation.

The principal objective of the EC Regulation is to contain, prevent and thereby reduce emissions of F gases covered by the Kyoto Protocol. The main provisions in the Regulation deal with containment through responsible handling during use, recycling and end-of-life recovery; reporting requirements and certain application specific bans on use and placing on the market.

The consultation includes the proposed GB offences and penalties Regulations which sets out offences for each of the key obligations in the EC Regulation and penalties for failure to comply and a draft partial Regulatory Impact Assessment. The proposed Regulations also provide proposed powers for enforcing bodies as well as for the Regulations to apply to offshore oil and gas installations.

www.defra.gov.uk/corporate/consult/f-gas/index.htm

Carbon Emissions Reduction Target April 2008 to March 2011

www.defra.gov.uk/corporate/consult/cert2008-11/index.htm

United Kingdom Atomic Energy Authority application to increase authorisation to dispose of radioactive waste from the Winfrith nuclear site in Dorset

www.environment-agency.gov.uk/yourenv/consultations/1117276/?version=1&lang=_e

Waste Strategy for England 2007: Incentives for Recycling by Households

Planning for a Sustainable Future

www.communities.gov.uk/index.asp?id=1510731

Renewable Energy: Reform of the Renewables Obligation

www.berr.gov.uk/consultations/page39586.html

The future of nuclear power: the role of nuclear power in a low carbon UK economy

The Government is consulting on the future of nuclear power in the UK. BERR want you to take part in this. You can visit the interactive websitewhere you can submit your response directly online.

The consultation seeks views on the information and arguments set out on whether the private sector should be allowed to build new nuclear power stations. BERR want to hear from members of the public, industry, non-Governmental organisations (NGOs) or any other organisation or public body.

BERR are seeking views on whether the Government has considered the relevant arguments; whether BERR have considered the arguments reasonably and whether there are other important arguments BERR have overlooked.

Your views will contribute to the shaping of the policy on the future of civil nuclear power in the UK. They will help Government assess the arguments before it reaches its final decision on the future of new nuclear build. BERR will consider carefully the responses it gets and this will enable BERR to take a decision on nuclear later in the year.

Technical consultations: Justification and Strategic Siting Assessment. Alongside this in-principle consultation there is a linked technical consultation on the details of running a Justification process and a Strategic Siting Assessment.

www.berr.gov.uk/consultations/page39704.html

Manufacturing Advisory Service (MAS)

The Manufacturing Advisory Service (MAS) plays a major role in providing UK manufacturers with the practical support they need to improve productivity and achieve success in an increasingly competitive global economy.

MAS owes much of its success to the strong partnership between BERR, RDA s and other key stakeholders who provide access to free (for SMEs) 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 competitive edge through adopting global best practice in manufacturing.

From April 2008, MAS will offer a greatly extended range of help and advice covering;

• Operational efficiencies beyond the shop floor to all aspects of manufacturing companies activities;
• Promoting innovation through implementing best practice in development and commercialisation of new products;
• Strategic planning and skills development;
• Sourcing materials, services and technology;
• Improving the performance and operation of the supply chain;
• Improved resource efficiency in both energy and waste

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.

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

Manufacturing

Energy and Environment Policy

Sector Knowledge

Sue Hawker
MAS
020 7215 3849
Susan.hawker@berr.gsi.gov.uk