Attachment 1
SMMT'S PROPOSAL TO UK GOVERNMENT
CRITERIA
FOR DISCOUNTS
IN THE
AUTOMOTIVE SECTOR
BACKGROUND
The government has proposed a scheme to encourage
the improvement of energy efficiency in business.
Although it is fiscally neutral overall, it
will increase the operating costs in the automotive sector significantly.
These cost increases will adversely effect the
competitiveness of the sector unless appropriate discounts can
be negotiated.
THE AUTOMOTIVE
SECTOR IS
DIFFERENT
Over 80 per cent of a vehicle's whole life energy
consumption occurs during its use phase. European manufacturers
have already reached a unique voluntary agreement to achieve a
25 per cent improvement in new vehicle fuel efficiency. This agreement
will incur expenditure of billions of pounds.
The automotive sector has already made significant
investments to improve the energy efficiency of its plants.
THE EXISTING
DISCOUNT SCHEMES
ARE NOT
SUITABLE FOR
THE AUTOMOTIVE
SECTOR
The IPPC regulation will cover only a very limited
number of sites in the sector.
The development of realistic but challenging
performance targets for the massive diversity of the automotive
sector will take a considerable time and may not be achievable
at all.
PROPOSED CRITERIA
FOR DISCOUNTS
It is proposed that discounts should be given
to companies in the sector who:
— have an environmental management
system in place (this could be demonstrated by ISO14001 certification).
— have made a public commitment to
improve the energy efficiency of their sites and products (this
could be demonstrated by signing up to the SMMT voluntary agreement
on sustainable development or one of the other existing energy
efficiency schemes.
— commit to undertake actions to ensure
they are moving towards the ACE (all cost effective actions) position.
(Attachment 1).
— report on; their energy use/efficiency
at their sites.
— the energy efficiency of their products
— the status of actions outlined in
Attachment 1
— be open to external audit if required.
STRUCTURE
It is proposed there should be an agreement
between the government and SMMT that in return for the offer of
discounts, the SMMT would administer the scheme for the sector.
A second agreement would exist between SMMT and participating
companies including the companies' written commitments.
Initially the sector will establish targets
only for the completion of the actions in Attachment 1.
Subsequently the feasibility of "performance"
targets will be reviewed.
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