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 facingt the steel industry in decarbonising in the years ahead.

At an estimated abatement cost of £100 per tonne of CO₂, and currently no ability to pass this on in sales, it is clear that the costs of decarbonisation cannot be shouldered by the steel industry alone, if it is to remain internationally competitive.

“The steel industry in the UK is already operating at a major competitive disadvantage; with UK power prices 51% higher than in Germany and 110% higher 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 that we actively reduce our industrial emissions here in the UK and do 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; 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 is ready to play its part in the new low-carbon economy, but the Government must join us in this challenge, becoming a closer and more active partner in the years ahead.”

The Committee on Climate Change’s Net Zero report can be found at the Web site (www.theccc.org.uk/wp-content/uploads/2019/05/Net-Zero-The-UKs-contribution-to-stopping-global-warming.pdf).

UK Steel, a division of Make UK, is the trade association for the UK steel industry. It represents all the country’s steel-makers and a large number of downstream steel processors.