Found: The Industrial Energy Transformation Fund is not ambitious enough, the long-promised “Clean Steel

Found: I am also very keen that the clean steel fund, which we have announced money for —£250 million —is

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, whether she has had discussions with representatives of the steel industry on the adequacy of funding for the clean steel fund; and if she will make a statement.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

The Government recognises the vital role that the steel sector plays across the UK economy, and we meet regularly with steel industry representatives to discuss a range of issues. We are continuing to work with the sector to understand its decarbonisation investment plans, and representatives for the steel industry have not raised the timings or scale of the Clean Steel Fund in recent months whilst these discussions have been ongoing.

Existing support for the steel industry’s decarbonisation efforts includes funding schemes such as the Industrial Energy Transformation Fund (IETF) and the Industrial Decarbonisation and Hydrogen Revenue Support (IDHRS).

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment she has made of the adequacy of the level of the clean steel fund.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

I refer the hon. Member to the answer I gave him on 12^th July 2023, UIN 192830.

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.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

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.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what progress her Department has made on establishing a Clean Steel Fund.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

The Government recognises the vital role that the steel sector plays across the UK economy. We will continue to work with the sector to support its decarbonisation efforts and we have already established various funding schemes such as the Industrial Energy Transformation Fund (IETF) and the Industrial Decarbonisation and Hydrogen Revenue Support (IDHRS) in this regard.

A decision on the Clean Steel Fund has not yet been taken as we are continuing to work with the sector to understand its decarbonisation investment plans.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, if she will publish the timeframe for the establishment of the Clean Steel Fund.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

I refer the Hon. Member to the answer I gave on 20 April to Questions 181110/12.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what consultation her Department has undertaken with businesses and trade bodies on the establishment of the Clean Steel Fund.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

The Government recognises the vital role that the steel sector plays across the UK economy. We will continue to work with the sector to support its decarbonisation efforts and we have already established various funding schemes such as the Industrial Energy Transformation Fund (IETF) and the Industrial Decarbonisation and Hydrogen Revenue Support (IDHRS) in this regard.

A decision on the Clean Steel Fund has not yet been taken as we are continuing to work with the sector to understand its decarbonisation investment plans.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what her timeframe is for the establishment of the Clean Steel Fund; and if she will make a statement.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

The Government recognises the vital role that the steel sector plays across the UK economy. We will continue to work with the sector to support its decarbonisation efforts and we have already established various funding schemes such as the Industrial Energy Transformation Fund (IETF) and the Industrial Decarbonisation and Hydrogen Revenue Support (IDHRS) in this regard.

A decision on the Clean Steel Fund has not yet been taken as we are continuing to work with the sector to understand its decarbonisation investment plans.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, which projects have received funding from the Clean Steel Fund.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

The Government recognises the important role the steel sector plays in the UK economy and we continue to work with the sector to understand and support its decarbonisation investment plans. To this end, we have already established various funding schemes such as the Industrial Energy Transformation Fund and the Industrial Decarbonisation and Hydrogen Revenue Support. Further proposals, including the approach to the Clean Steel Fund, will be unveiled as soon as possible.

Found: Clean Steel Fund | UIN 194754 Question for Department for Business and Trade Asked by Bill Esterson