The document summarizes key facts about manufacturing in Wales, including that it represents 11% of the Welsh workforce and 15.8% of GDP. It notes manufacturing job losses have been less steep in Wales compared to the UK as a whole in recent years. Energy intensive industries are major emitters in Wales, representing around a quarter of total emissions. The document discusses the potential for industrial energy efficiency savings and decarbonization technologies to reduce emissions by 2050 according to UK government studies, but notes significant policy gaps remain to realize this potential.

1. 20 April 2015
Fifth Carbon Budget and Welsh
Manufacturing
EEF Presentation
Committee on Climate Change: Wales Meeting
Cardiff
Paul Byard and Richard Warren
April 2015

2. Welsh Manufacturing: Key facts
• 155,800 jobs in the Welsh manufacturing sector
• Manufacturing represents 11.0% of workforce
• Manufacturing accounts for 15.8% of GVA of Wales
20 April 2015
11%
7.80%
Wales UK
Manufacturing workforce as
proportion of total
15.80%
10%
Wales UK
Manufacturing as proportion of
economy

3. Welsh Manufacturing: Key facts
• Between September 1999 and September 2014, the number of
manufacturing workforce jobs in Wales fell by 25.6 per cent,
compared to a fall of 36.3 per cent across the UK
• Wales accounted for £13.1bn of goods exports in 2014 – this was
11% down on the value of goods exports in 2013. Welsh export
amounted to 4.6% of the UK total.
• Manufacturing output in Wales rose by 2.2% in the year to 2014q3
compared to 2.6% reported for the UK
• Sectors contributing to growth in Wales included food and transport,
but larger declines were reported in machinery and rubber, plastics
and non-metallic minerals.
20 April 2015

4. Manufacturing in Wales
20 April 2015
0
50000
100000
150000
200000
250000
300000
1990 2000 2008 2010 2015 2020 2025
Employed in Manufacturing
Employed in Manufacturing
Skills Gap
Increasing

5. End User Emissions in Wales and the UK
20 April 2015
16.7% 16.4%
35.1%
4.6%
2.3%
19.0%
-1.3%
2.8%
4.4%
9.7%
23.0%
31.0%
1.9% 3.3%
25.0%
-0.9%
4.5%
2.5%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Sector emissions as proportion of total: Wales and UK
Wales UK

6. Industrial Energy Efficiency Potential
• 42 TWh of ‘socially cost effective’
energy efficiency savings available
by 2020
• DECC estimates that only 17% of
this will be achieved by current
policy mix
• This compares to 29 TWh available
in commercial and public sector
where 64% will be delivered by
current policy mix
• CCC 2014 report notes significant
policy gap in 2020s

7. Energy Intensive Manufacturing in Wales
• 2 steel plants
• 1 oil refinery
• 5 paper mills
• 2 cement plants
• 15 chemicals plants
• 3 Ceramics plants
- Direct emissions from EII sites
11-12 MtCO2e per annum, a
quarter of Welsh total
- 15-20% of the total emissions
from UK EII sector
20 April 2015

8. 2050 Industrial Decarbonisation Roadmaps
20 April 2015
• 18mth Project
• 8 ‘heat intensive sectors’ covering 2/3rd of
industrial emissions
• DECC, BIS, Industry, NGOs and
academics
• The report finds that a 30% reduction in
emissions can be achieved by grid
decarbonisation and energy efficiency
• A further 40% savings may be possible
with employment of a range of
technologies – importantly does not
include any economic considerations
• Identifies key technologies, RD&D and
possible next steps for industry and
government

9. 2050 Industrial Decarbonisation
Roadmaps: BAU
20 April 2015

10. 2050 Industrial Decarbonisation
Roadmaps: Max Potential
20 April 2015

11. 20 April 2015
Thank you
Richard Warren
Senior Energy Policy Adviser
EEF
Direct: 020 7654 1561
Email: rwarren@eef.org.uk