Campaigners warned companies in the
threatened industry need support to move to environmentally-friendly processes
before it is too late
Steel
campaigners have warned the industry could be “suffocated” amid tighter limits
on pollution.
The UK Emissions Trading System Authority announced a
shake-up of a scheme which restricts the total amount of greenhouse gases
aviation, power and other energy intensive industries, including steel, can
belch out.
It said: “From next year, these industries will be
required to bring their emissions down at the rate needed to reach net zero
goals – sending a clear signal to industry to invest in the long-term
decarbonisation that will help the UK to maintain its world-leading position in
cutting carbon emissions.
“To ease this transition, the cap will be set at the
highest level of the range consulted on, in line with net zero - allowing
maximum flexibility for industries.”
Existing free allowances will be
maintained until 2026, with the Authority saying: “This incentivises industries
away from costly fossil fuels and encourages them to cut their carbon footprint
by investing in energy efficiency and cleaner, or renewable technologies, which
in turn can boost energy security.”
Steel firms
have repeatedly asked for help in switching to greener production - and raised
fears for the industry’s future unless they receive support.
The sector is blamed for 14% of the UK’s industrial
emissions and 2.7% of all Britain’s greenhouse gases.
UK Steel said that retaining the sector’s free
allowances for three years will not be enough to help decarbonise steel.
It warned that “gaps are evident in the ETS reform
details”, adding: “With 2026 less than three years away, and with only nine
years to decarbonise the steel industry according to the Climate Change
Committee, the lack of detail, strategy and financial long-term leadership
leaves steelmakers in the dark.”
Director-general Gareth Stace said: “Without a hawk-like
vision, a carefully planned capital expenditure and a powerful decarbonisation
strategy, we could simply close down steel plants and de-industrialise the
nation.