Sir Jim Ratcliffe warns UK carbon policies are killing manufacturing

Calls for action to head off a taxpayer rescue

INEOS chief Sir Jim Ratcliffe has called for the UK government to rethink its carbon reduction policy, warning that efforts to decarbonise major emitters risk causing plant closures and job losses.

“INEOS Grangemouth faces yet another tax bill for carbon dioxide emissions, this time for £15m (US$20m),” Ratcliffe said in April. Each year, operators covered by the UK’s emission trading scheme (ETS), including heavy industry and power generators, have to surrender carbon allowances to cover their emissions.

The £15m will cover the 400,000 t of CO2 emitted last year by the business producing power and steam for its chemical complex in Scotland.

INEOS will have to pause investment in projects designed to make operations more efficient, Ratcliffe said, noting that the cost is “another heavy blow” coming alongside much higher energy prices. UK industry energy bills are 400% higher than competitors in the US and 100% higher than Europe, according to the Chemicals Industry Association (CIA).