Energy companies will stop UK hitting CO2 targets

Energy, utilities and materials companies in the FTSE 100 will prevent the UK from hitting its 2020 emissions reductions targets for another decade, according to a new report.

By Rowena Mason, City Reporter (Energy)Published: 6:16PM GMT 07 Jan 2010
The Carbon Disclosure Project , which audits company emissions, has found that these key sectors will need to double their efforts to cut greenhouse gases if the UK is to meet its commitments.
Just 24 energy, utilities and materials companies are responsible for almost 90pc of the FTSE 100's total emissions. Their annual CO2 reduction rate is just 1.2pc, but they will need to raise this to 2.4pc to meet national targets.

"If we continue on this trajectory, we will not deliver in line with government requirements for 2020, until 2030," the report said.
Paul Dickinson, chief executive of the project, said there was a "carbon chasm" between the emissions being cut and what needs to be done by big companies.
"It is crucial that those sectors responsible for nearly 90pc of FTSE 100 reported emissions set aggressive reduction targets," he said.
"Although we see some individual companies setting strong targets, the sector-average reduction targets for materials, energy and utilities sectors are lagging behind what is required to meet UK government targets."
The materials sector, responsible for more than a quarter of reported emissions, will actually be responsible for a 1.5pc increase in emissions.
Energy companies, accounting for 29pc of emissions, have a reduction rate of 2pc, and utilities businesses, with almost a third of the emissions, are only making cuts at a rate of 1.8pc
The report comes after European leaders backed down from tightening the 2020 targets from a 20pc reduction in CO2 to a 30pc cut at the Copenhagen climate change conference . However, utility companies are expected to cut their emissions gradually over the next decade as a new raft of nuclear and renewable power stations are built