Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, pursuant to the Answer of 29 June 2023 to Question 190814 on Iron and Steel: Environment Protection, what her planned timetable is for making a decision on the Clean Steel Fund.

We have not set a timetable for decisions on the Clean Steel Fund as we are continuing to work with the sector to understand their decarbonisation investment plans and pathways, and what would work best for the industry to transition to lower carbon iron and steel production.

In the meantime, there are well established funding schemes such as the Industrial Energy Transformation Fund (IETF) and the Industrial Decarbonisation and Hydrogen Revenue Support (IDHRS) that the Steel sector can access in this regard. In February, we announced the British Industry Supercharger – decisive measures to reduce energy costs for energy intensive industries, including steel, in line with those charged across the world’s major economies.

The Government also takes seriously the potential for carbon leakage risk in the future. We have recently consulted on potential future measures to mitigate those risks, including the potential for a UK Carbon Border Adjustment Mechanism (CBAM). The consultation closed on 22 June 2023, and the government will respond to the consultation in due course.