Commons Sense

Hansard-based summaries and metrics

High-emission Steel 2025-01-21

2025-01-21

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Response quality

Questions & Answers

Q1 Partial Answer
Antonia Bance Lab
Tipton and Wednesbury
▸ Context
UK steel producers are concerned about the UK carbon border adjustment mechanism (CBAM) coming into effect later than and differently from the EU CBAM, potentially threatening domestic production.
Newby Foundries and Alucast in my constituency have raised concerns with me regarding the impact of the UK CBAM coming into effect after and differing from the EU CBAM. This could threaten domestic steel production and make exporting metal products to the EU more difficult. Can you reassure me that the UK CBAM will not be weaker than the EU CBAM, and can we meet to discuss this?
James Murray (Exchequer Secretary to the Treasury)
The UK CBAM will mitigate carbon leakage by placing a carbon price on emissions-intensive industrial goods, including iron and steel. It is designed for the UK context and covers indirect emissions more broadly than the EU CBAM. A representative from the UK steel sector attended the first industry working group meeting earlier this week. I am committed to engaging with affected industries further and would be happy to meet my hon. Friend to discuss these issues.
▸ Assessment & feedback
Specific assurance that the UK CBAM will not be weaker than the EU CBAM was not provided.
Response accuracy
Q2 Partial Answer
Gavin Williamson Con
Stone, Great Wyrley and Penkridge
▸ Context
Heavy industry relies on low-cost energy. Energy prices are rising due to regulation and market conditions, impacting the competitiveness of UK heavy industries.
Energy costs for heavy industries like steel, ceramics, etc., are rising due to regulations and global markets. Other countries provide more support to their heavy industries by ensuring lower input costs for energy. What can be done to protect our heavy industry in the future?
James Murray (Exchequer Secretary to the Treasury)
The priority is to bring down the cost of energy through investment in renewable home-grown energy, ensuring energy independence, security and lower bills for households and businesses.
▸ Assessment & feedback
No specific action or timeline was given to address rising energy costs for heavy industries.
Response accuracy