Question to the Department for Business and Trade:
To ask His Majesty's Government what steps they are taking to ensure British steel manufacturers are not undercut by imported high emission steel manufacturers.
A successful steel industry is critical to a vibrant and secure economy. The UK is taking action on industrial decarbonisation to meet net zero, but we recognise that imports into the UK will often not be subject to the same standards, creating a risk of carbon leakage. That is why the UK has committed to introduce a UK Carbon Border Adjustment Mechanism (CBAM) from 1 January 2027. The CBAM will ensure that highly traded, carbon-intensive goods from sectors in scope (including the steel sector) that are imported into the UK, face a comparable carbon price to those produced domestically. This will support UK decarbonisation efforts to lead to a true reduction in global emissions rather than simply displacing carbon emissions overseas, and give industry confidence to invest in the UK knowing their decarbonisation efforts will not be undermined.