Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect on the viability of the UK steel sector of industry companies paying Carbon Price Support while EU companies do not.

Decarbonisation in the power sector, driven in part through the Carbon Price Support (CPS) tax rate, has accounted for almost 78% of the reduction in the UK’s carbon emissions between 2012-18.

The government compensates eligible energy intensive businesses for up to 75% of the costs in their electricity bills due to the UK Emissions Trading System (previously the EU ETS) and the Carbon Price Support (CPS). This support was worth £120m in 2019, with those businesses benefiting from it mainly operating in the steel, chemicals and paper and pulp sectors.