20 April 2015
Fifth Carbon Budget and Welsh Manufacturing
EEF Presentation
Committee on Climate Change: Wales Meeting
Cardiff
Paul Byard and Richard Warren
April 2015
Welsh Manufacturing: Key facts
• 155,800 jobs in the Welsh manufacturing sector
• Manufacturing represents 11.0% of workforce
• Manufacturing accounts for 15.8% of GVA of Wales
20 April 2015
11%
7.80%
Wales UK
Manufacturing workforce as proportion of total
15.80%
10%
Wales UK
Manufacturing as proportion of economy
Welsh Manufacturing: Key facts
• Between September 1999 and September 2014, the number of manufacturing workforce jobs in Wales fell by 25.6 per cent, compared to a fall of 36.3 per cent across the UK
• Wales accounted for £13.1bn of goods exports in 2014 – this was 11% down on the value of goods exports in 2013. Welsh export amounted to 4.6% of the UK total.
• Manufacturing output in Wales rose by 2.2% in the year to 2014q3 compared to 2.6% reported for the UK
• Sectors contributing to growth in Wales included food and transport, but larger declines were reported in machinery and rubber, plastics and non-metallic minerals.
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Manufacturing in Wales
20 April 2015
0
50000
100000
150000
200000
250000
300000
1990 2000 2008 2010 2015 2020 2025
Employed in Manufacturing
Employed in Manufacturing
Skills Gap Increasing
End User Emissions in Wales and the UK
20 April 2015
16.7% 16.4%
35.1%
4.6% 2.3%
19.0%
-1.3% 2.8% 4.4%
9.7%
23.0%
31.0%
1.9% 3.3%
25.0%
-0.9%
4.5% 2.5%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Sector emissions as proportion of total: Wales and UK
Wales UK
Industrial Energy Efficiency Potential
• 42 TWh of ‘socially cost effective’ energy efficiency savings available by 2020
• DECC estimates that only 17% of this will be achieved by current policy mix
• This compares to 29 TWh available in commercial and public sector where 64% will be delivered by current policy mix
• CCC 2014 report notes significant policy gap in 2020s
Energy Intensive Manufacturing in Wales
• 2 steel plants
• 1 oil refinery
• 5 paper mills
• 2 cement plants
• 15 chemicals plants
• 3 Ceramics plants
- Direct emissions from EII sites 11-12 MtCO2e per annum, a quarter of Welsh total
- 15-20% of the total emissions from UK EII sector
20 April 2015
2050 Industrial Decarbonisation Roadmaps
20 April 2015
• 18mth Project
• 8 ‘heat intensive sectors’ covering 2/3rd of industrial emissions
• DECC, BIS, Industry, NGOs and academics
• The report finds that a 30% reduction in emissions can be achieved by grid decarbonisation and energy efficiency
• A further 40% savings may be possible with employment of a range of technologies – importantly does not include any economic considerations
• Identifies key technologies, RD&D and possible next steps for industry and government
20 April 2015
Thank you
Richard Warren
Senior Energy Policy Adviser
EEF
Direct: 020 7654 1561
Email: [email protected]
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