Protecting Britain’s Steel Industry

Geraint Davies Excerpts

Monday 21st June 2021 Commons Chamber

[Geraint Davies (Swansea West) (Lab/Co-op) [V]]

We cannot allow cheap carbon-intensive steel from China to destroy our steel industry and our planet. Over half the steel in the world is now produced by China—the amount has doubled in the last 20 years—and we face a climate catastrophe. British steel uses 50% less carbon, and we have a situation in which, since Kyoto, global emissions have gone up 60% since 1990. The Paris limit of 1.5° C will be breached by 2025, and 8,500 tonnes of ice is melting every second of this debate in Greenland. China is emitting 28% of global emissions, which is more than the US and the EU combined: 7 tonnes of carbon per person, compared with 5.8 tonnes in Britain. On a consumption basis we do 8 tonnes, because we have subcontracted our coal-fired power stations and manufacturing to China. China now has over half the capacity for coal-fired power stations—1,037 coal-fired power stations—and it plans another 300. Its emissions will not peak until 2030, and we do not know what that peak will be. It will only be carbon neutral by 2060, and that is not even net zero.

We must act. We need to have the same tariff safeguards as the EU and the US against the dirty steel the Chinese are dumping. We need to switch to the border adjustment carbon tax being considered by the EU, which factors the carbon price into those taxes, for COP26. We have talked a lot today about the balance between strategic industrial interests and consumer prices, but those consumer prices need to factor in the environmental cost of carbon. It must be in the guidelines for the TRA to make these recommendations, which it is not. Buying more carbon-intensive products—whether steel, manufacturing or agriculture—is destroying our planet. Let us build back greener, reward lower carbon, tax higher carbon in COP26 and remember that, as the US says, we want to make trade a force for good that encourages a race to the top—not just for workers’ rights, but for our environment. Let us build back British steel, let us have a safer planet and let us protect jobs in Wales, in England and beyond.