CPI director of business affairs Graham Barnard said that he was hopeful the Government would recognise the increasing and continuing demand for paper and would not do anything to compromise the UKs ability to compete against its European neighbours.

Although the figures have yet to be confirmed, reports indicate that Ministers could aim for a 16% cut in carbon emissions by 2008, and by 20% by 2012.

Targets will be set for the key sectors, such as paper, and Barnard said it was likely some sectors could be set different targets depending on their performance up to now.

The fear is that industry sectors could shoulder a larger share of the burden, rather than motorists and households, impacting on electricity charges and business overheads.

Given the considerable progress the paper industry has made, these targets will still require considerable further effort, Barnard said.

by Andy Scott