Commenting on today’s announcement that the Government is consulting on a UK Carbon Border Adjustment Mechanism (CBAM) and other carbon leakage measures -
UK Steel Director General, Gareth Stace, said:
“The vast majority of the world’s steel producers face no carbon costs, whereas UK steel producers faced an estimated £120m last year in carbon costs, dealing a damaging punch to our competitive position. We need a level playing field where imported and domestically produced steel face similar carbon costs, and a Carbon Border Adjustment Mechanism (CBAM) can deliver just that.“
"As the UK steel industry moves in its transition to green steel production, it is essential that it will not be continually outcompeted by high emission, imported steel. Europe is implementing its own CBAM, and the UK risks a damaging trade barrier with our biggest trade partner if we don’t quickly develop and implement our own measures. Failure to do so, could mean steel made here in the UK is blocked from being sold into the EU.“
"For over 20 years, our industry has been damaged by carbon leakage because our global competitors did not and do not pay carbon costs. This has, year after year, chipped away at our competitiveness and resulted in the UK producing less than half the tonnes of steel we did 20 years ago. The UK has been too slow to react on carbon leakage, so implementing a UK CBAM alongside other carbon leakage measures can put this right, and the Government must urgently act to inject a competitive boast so we can compete in a fierce global steel market.”
About UK Steel: UK Steel is the trade association for the UK steel industry. It represents all the country’s steelmakers and most of downstream steel processors.
The UK Steel sector: