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Greenhouse gas emissions trading


UK and EU trading schemes

Rolls-Royce joined the UK Emissions Trading Scheme when it was set up in 2002 by voluntarily signing up to targets for significant reductions in greenhouse gas emissions from 35 of its UK sites.

The Group has also participated in the EU Emissions Trading Scheme and has operated a number of Climate Change Agreements (CCA). Data is independently verified by Det Norske Veritas (DNV). As a result of the continued reduction in energy consumption, the Group has generated surplus credits from these schemes equivalent to 20,000 tonnes of carbon dioxide.

Options for renewable power generation on Group sites are also being assessed. We are investigating the feasibility of generating lower-carbon and renewable energy within our sites and decreasing the carbon intensity of our grid supplied electricity. Currently some 30 per cent of our grid supplied electricity is from carbon-free sources.

US trading schemes

The Group joined in 2003 the voluntary Chicago Climate Exchange (CCX) greenhouse gas emissions trading scheme in the US.

The scheme required participants to secure by 2006 a four per cent reduction in their emissions, compared to the average achieved over the period 1998-2001. The participating business units
(Rolls-Royce Corporation, Energy Systems and
Rolls-Royce Canada) reduced emissions by over 30 per cent. The Group has joined phase II of the scheme, which runs from 2007 to 2010.

Case study

Bergen foundry - sand reclamation
The foundry in Bergen, Norway, has recently installed a sand thermal reclamation facility at a cost of £500,000. Sand is used for making moulds for metal casting and the process had been producing around 7,000 tonnes of waste sand a year, which had then been sent for landfill.

sand reclamation

The new sand reclamation plant will not only reduce sand waste by 95 per cent but will also have the added benefit of improving casting quality, thereby reducing scrap and rework.