Commenting on the publication of the Committee on Climate Change’s ‘Net Zero’ report, UK Steel Director General, Gareth Stace, said:
“The CCC’s analysis of the road to a net-zero carbon UK lays out clearly the major challenges facing the steel industry in decarbonising in the years ahead. At an estimated abatement cost of £100 per ton of CO2, and currently no ability to pass this on in sales, it is clear the costs of decarbonisation cannot be shouldered by the steel industry alone while remaining internationally competitive.
“The steel industry in the UK is already operating at a major competitive disadvantage, with UK power prices being 50% higher than in Germany and 110% than in France, adding to this burden is not a realistic option. Step change decarbonisation in industry will therefore require clear sighted policy interventions from the Government to ensure we actively reduce our industrial emissions here in the UK and not simply export them overseas. The Government needs to ensure the steel industry’s continued international competitiveness and enact policy that will spur innovation and investment in low-carbon technologies.
“This has been our message for years and it is therefore enormously promising to see the CCC’s clear understanding of this in the report and the need for active government support for trade-exposed sectors, such as steel, and technologies like carbon capture and storage. The steel sector stands ready to play its part in the new low carbon economy, supplying vital products essential to everyone’s lives, but the Government must join us in this challenge becoming a closer and more active partner in the years ahead.”