The UK Steel trade association has welcomed the reforms to the EU Emissions Trading System (ETS) announced by MEPs last week.

It says that they should help reduce the cost of production by ensuring that there is “more protection for the most vulnerable sectors” in the form of free EU ETS allowances.

Director Gareth Stace (pictured) said: “The European Parliament should be applauded for finding a balance between the aims of those trying to drive carbon prices higher and the needs of sectors like mine that are trying to compete internationally on tiny margins, often against plants facing none of the same regulatory costs.”