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What is the EU Emissions Trading Scheme (EU ETS)?

In 2005, as part of a commitment to combatting climate change, the European Union launched its Emissions Trading Scheme (EU ETS).

The programme operates on a ‘cap and trade’ principle which sees a limit placed on the volume of greenhouse gases that can be emitted by over 11,000 qualifying organisations - these include heavy energy users such as those in the power generation and manufacturing industries.

Companies within the 28 EU countries (plus Iceland, Liechtenstein and Norway) receive or purchase emission allowances which they may trade with one another if required. Meanwhile, the cap is gradually reduced so that, over time, emissions fall.

It is predicted that by 2020, emissions from qualifying industries will be 21 per cent down on 2005 figures and by 2030 a 43 per cent reduction will have been achieved.

Companies failing to surrender enough allowances to cover all emissions face substantial fines, while cleaner businesses can sell on excess allowances to underperforming rivals.

Of all the power used in industry, around 65 per cent is attributed to electric motors, therefore this is a key area upon which to focus energy reduction in order to lower bills and emissions. Gibbons Engineering Group supply a wide range of energy-efficient motors and driven equipment such as pumps and HVAC systems to help businesses across all sectors lower their bills and carbon emissions.

In addition, we supply ABB variable-speed drives, which can reduce energy consumption by as much as 60% in many applications, offering a typical return on investment of 12 months or less.

If you’d like to discuss reducing your company’s carbon emissions, call Gibbons on 01621 868138 or email

Variable-Speed Drives, Electric Motors

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