The Food & Drink Innovation Network

Sustainability Tune-In

25th November 2010

Steve Reeson

Head of Climate Change and Energy Policy

Food and Drink Federation

FDF Fivefold Environmental Ambition

State of Play Climate Change Policy

The UK Food and Drink Industry

Represents 15% of the UK's total manufacturing sector Is the fourth largest food and drink manufacturing industry in the worldDirectly employs about 440,000 peopleIs an important trading partner with Europe……and a key partner for UK farmersComprises 6,500 companies, the majority being SMEs or micro enterprises

Delivering our Five-foldEnvironmental Ambition

■ Significantly reducing CO2 emissions

■ Zero food and packaging waste to landfill

■ Cutting the packaging reaching households

■ Reducing the amount of water used in factories

■ Fewer, and friendlier, food transport miles

Five-fold – Way Ahead

• Year 3 Progress report to be published on 8 December 2010

• Will be refreshing FEA targets and ambitions

• Looking to establish a “whole chain” approach with our suppliers and customers

What We Need

• A coherent policy framework which makes sustainable food production a key strategic priority for the UK, both to:

- help contribute to national food security

- meet the challenges of climate change

• Evidence based decision making, using proper life-cycle analysis tools

• Efficiency of resource use throughout the chain

UK Food and DrinkManufacturer

UN Framework Convention on Climate Change

KyotoCopenhagen

Cancun

European Union 20% emission by 2020 - 30%

20% Renewables20% Energy Efficiency

“Roadmap for a low carbonEconomy by 2050”

Summary of main Climate Change Policy impacts on FDF members – 18th November 2010

Climate Change Act 2008:

Carbon Budgets

Climate ChangeCommittee

34% 2018 -202242% - if EU move to 30%

UK

Discussion‘Energy Tax

Directive’

EU EmissionsTrading Scheme

Burden Share

Renewable Energy

Directive

EnergyEfficiency

PlanF Gas RegsOzone Regs

Green DealSMEs

Green InvestmentBank GHG Corporate

Reporting?

£/MWh cost – Energy Policy Statement, Electricity Market Reform, EUETS, ‘CCL’, CCS etc.

RenewableObligation Certificates

Feed in Tariffs

Renewable HeatIncentive

£/Te CO2e

£/Te CO2e

Climate ChangeAgreements?

Reform of CCL

CarbonReduction

Commitment

£/Te CO2e

Coalition Government 2010Climate Change and Energy Policy

•June Budget•July Energy Statement – 2050 Pathway

•October National Energy Policy•October Spending Review

•Energy Security and Green Economy Bill•CCL Reform Consultation

•DECC-Marland-Simplification