Commons Sense

House of Commons · Ministers' Questions

Steel Industry: Decarbonisation

Thursday 29 June 2023 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • Government has provided over 1 billion in grants for steel industry decarbonisation since 2013.
  • More than 730 million has been given to cover energy costs for the steel industry.
  • Government loan of 30 million was recently repaid by Celsa Steel.

Topics (select to filter)

Questions & Answers

Q1 Stephen Kinnock Lab Aberafan Maesteg
Climate Energy Business & Trade
Context

The steel industry faces significant challenges in reducing emissions by 93% by 2050 as per the Paris agreement, and concerns have been raised about government investment compared to competitor nations.

Question

What steps she is taking to help the steel industry to decarbonise. The Government are not doing enough, particularly in comparison with competitor nations, when it comes to investment in the transition to decarbonised steel. UK Steel has estimated that nearly 23 million tonnes of non-EU steel could flood the UK market if the UK fails to introduce its own carbon border adjustment mechanism at the same time as the EU in 2026.

Answer from Nusrat Ghani

We have been supporting the steel industry with more than £1 billion available in grants for decarbonisation since 2013. More than £730 million has also been provided to cover energy costs. The carbon border adjustment mechanism (CBAM) will begin a transitional reporting phase in October, followed by full introduction in 2026.

Partly answered

Not addressed: Specific timeline and investment details for green steel were not provided.

How: Under Review, Will Produce A Response In Due Course

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Q2 Stephen Kinnock Lab Aberafan Maesteg
Climate Energy Business & Trade
Context

The UK steel sector faces increased competition from non-EU countries due to the absence of a carbon border adjustment mechanism, leading to concerns about market flooding.

Question

When will we see the Government stepping up and investing in green steel as is being done in competitor countries, and when can we expect the introduction of a British CBAM? The UK Steel has estimated that nearly 23 million tonnes of non-EU steel could flood the UK market if the UK fails to introduce its own carbon border adjustment mechanism at the same time as the EU in 2026.

Answer from Nusrat Ghani

We have been supporting the steel industry with more than £1 billion available in grants for decarbonisation since 2013. More than £730 million has also been provided to cover energy costs. The carbon border adjustment mechanism (CBAM) will begin a transitional reporting phase in October, followed by full introduction in 2026.

Partly answered

Not addressed: Specific timeline and investment details for green steel were not provided.

How: Under Review, Will Produce A Response In Due Course

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Q3 Bill Esterson Lab Sefton Central
Brexit Energy Business & Trade
Context

The UK is the only G20 country where steel production is falling, and UK steel producers pay significantly more for electricity compared to their German counterparts. There are also concerns about the use of domestically produced steel in defence contracts.

Question

Labour's £3 billion green steel plan will give our industry the bright future that other countries are offering their steel sectors. Why do this Government not insist on using domestically produced steel in defence contracts? UK steel producers pay 62% more than their German counterparts for electricity.

Answer from Nusrat Ghani

We have provided more than £1 billion for decarbonisation and unprecedented support to help with energy costs. There is also a Government loan of £30 million recently repaid by Celsa. When it comes to procurement, it is absolutely right that we do everything we can to make sure that we have UK firms procuring UK steel.

Partly answered

Not addressed: Specific reasons for not insisting on using domestically produced steel in defence contracts were not provided.

How: Not Addressed

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