Commons Sense

House of Commons · Ministers' Questions

High-emission Steel

Tuesday 21 January 2025 · 2 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 1 Not answered 0

Key points

  • Newby Foundries and Alucast have raised concerns about the impact of the UK CBAM on domestic steel production and exporting metal products to the EU.
  • The UK CBAM will mitigate carbon leakage by pricing carbon emissions for emissions-intensive industrial goods, including iron and steel.
  • To protect heavy industries, the focus is on reducing energy costs through investment in renewable energy, ensuring energy independence and lower bills for businesses.

Topics (select to filter)

Questions & Answers

Q1 Antonia Bance Lab Tipton and Wednesbury
Energy Business & Trade
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.

Question

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?

Answer from 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.

Partly answered

Not addressed: Specific assurance that the UK CBAM will not be weaker than the EU CBAM was not provided.

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Q2 Gavin Williamson Con Stone, Great Wyrley and Penkridge
Energy Business & Trade
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.

Question

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?

Answer from 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.

Not addressed: No specific action or timeline was given to address rising energy costs for heavy industries.

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