"This is fantastic news, and the culmination of over a year's hard work", said Stuart Goodall, chief executive of Confor. "Confor approached the Department of Energy and Climate Change (DECC) in early 2013 to request that UK sawmilling be accepted for a CCA, which would then provide the opportunity to avoid two energy taxes currently levied on the sector".
Acceptance into a sector CCA means that sawmill businesses commit to reducing energy consumption per unit of production in return for a rebate on the Climate Change Levy, and, if they are subject to it, avoidance of the Climate Reduction Commitment. Energy reduction measures should be practical, with a reasonable pay-back period.
A sector target for reducing energy has been put to DECC. The next stage will be to finalise the details of the CCA and then for interested sawmills to apply to participate in the Agreement.
"Many sawmills can potentially benefit from participating in the CCA, and Confor would be happy to advise any interested mill. However, mills consuming less than 10,000 tonnes of wood a year may find the financial benefit to be marginal at best."
Confor has calculated that the UK sawmilling sector pays around GBP 1.5 million ($2.5 million) a year in energy taxes under the Climate Change Levy and through the Climate Reduction Commitment.
Confor: promoting forestry and wood is a membership organisation that promotes sustainable forestry and low-carbon businesses.