Iron and Steel: Manufacturing Industries
Question
Bill Esterson
To ask the Secretary of State for Business and Trade, what assessment she has made of the impact of rises in carbon costs on the competitiveness of the UK steel industry.
Answer
Ms Nusrat GhaniThe Government remains committed to a decarbonised and competitive steel sector. Industrial sectors (including steel) have been able to bid into Government competitive funds worth more than £1 billion to support them to cut emissions and become more energy efficient.
Additionally, UK Emissions Trading Scheme industrial participants, including in the steel sector, receive free allocations, mitigating the risk of carbon leakage. Free allocations are guaranteed at current levels until 2026, and we are reviewing how to target support to most at risk sectors thereafter. In March, the Government also published a consultation considering a range of potential policy measures to mitigate future carbon leakage risk and ensure UK industry has the optimal policy environment to decarbonise.