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2nd November 2006
Oil refining industry reaction to Stern Review
UKPIA, the trade association representing the nine main oil refining companies operating in the UK, welcomes the timely publication of the Stern Review on the economics of climate change.
The review calls for early action and co-operation to be focussed on the key areas of emissions trading, technology co-operation, reduction in deforestation and climate change adaptation measures.
Chris Hunt, Director General commented “ We concur that early action is necessary if CO2 targets are to be met and the UK refining industry is already taking action to improve energy efficiency in refining and in its operations. Indeed this was one of the conclusion of UKPIA’s report “Delivering a low carbon economy”2 published at the start of 2005, that highlighted a range of short and longer-term measures to reduce CO2 emissions. However, it also concluded that although improved technology and lower carbon fuels can make a substantial contribution to meeting CO2 reduction targets, a significant change in consumer behaviour will be required for the UK to make the transition to a low carbon economy and meet the Government’s 2050 CO2 reduction targets.”
He continued “ The oil refining industry is essential to the UK’s future security of energy supply2 but it faces a number of future challenges such as meeting the changing pattern of product demand by consumers, adapting to processing a wider range of crude oils and the need to further reduce emissions.
The Stern Review highlights the likely future impact of higher carbon pricing on carbon intensive industries such as refining. However, within the EU it is important that future measures do not disadvantage the competitiveness of UK refineries. The loss of refining in the UK to overseas locations outside the EU might not produce savings in global emissions but would certainly impact the UK’s security of energy supply. I hope that the joint task group set up to examine the future of UK refining will look at all these issues.”
Enquires to: Nick Vandervell Tel. 0207 632 9880,
Chris Hunt Tel. 0207 632 9881
Notes to editors:
1. UKPIA represents nine oil refining and marketing companies operating in the UK, which also own approximately 2,500 of the UK's 9,764 service stations, and own and operate the nine crude processing oil refineries in the UK.
2. UKPIA’s reports “Delivering a low carbon economy” and “ Meeting our energy needs: the future of UK refining” are available on our web site at
www.ukpia.com/publications
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