Asked by: Bill Esterson (Labour - Sefton Central)
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 impact of increasing carbon costs on the steel industry.
Answered by Nusrat Ghani - Minister of State (Minister for Europe)
I refer the Hon Member for Sefton Central to the answer I gave him on 2 May 2023, UIN 182550.
Asked by: Bill Esterson (Labour - Sefton Central)
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 impact of rises in carbon costs on the competitiveness of the UK steel industry.
Answered by Nusrat Ghani - Minister of State (Minister for Europe)
The Government remains committed to a decarbonised and competitive steel sector. Industrial sectors (including steel) have been able to bid into Government competitive funds worth more than £1 billion to support them to cut emissions and become more energy efficient.
Additionally, UK Emissions Trading Scheme industrial participants, including in the steel sector, receive free allocations, mitigating the risk of carbon leakage. Free allocations are guaranteed at current levels until 2026, and we are reviewing how to target support to most at risk sectors thereafter. In March, the Government also published a consultation considering a range of potential policy measures to mitigate future carbon leakage risk and ensure UK industry has the optimal policy environment to decarbonise.
Asked by: Lord West of Spithead (Labour - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government whether the UK has a strategic need to maintain a steel industry; and if not, how it can ensure industrial resilience.
Answered by Lord Johnson of Lainston - Minister of State (Department for Business and Trade)
The UK steel industry not only underpins a range of domestic industries, it forms the core of some local communities and economies. The Government remains committed to a UK steel industry and a decarbonised future, supporting local economic growth and our levelling-up agenda.
Asked by: Charlotte Nichols (Labour - Warrington North)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether he has had recent discussions with industry stakeholders on taking steps to reduce the carbon footprint of steel manufacturing.
Answered by Nusrat Ghani - Minister of State (Minister for Europe)
The Government recognises the vital role that the steel sector plays in our economy. The 2021 Net Zero Strategy reaffirms our commitment to a sustainable steel sector and to continue working with the steel industry on decarbonisation.
Whilst decarbonisation pathways for specific sites will be a commercial decision for individual companies, we are working closely with industry stakeholders to support decarbonisation options and reduce the carbon footprint of steel manufacturing.
We regularly engage with industry stakeholders to ensure advances towards our Net Zero obligations and to help inform progress to reducing our carbon footprint.
Asked by: Bill Esterson (Labour - Sefton Central)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 30 January 2023 to Question 131201 on Iron and Steel: Manufacturing Industries, If he will publish the outcome of the call with members of the steel sector on 6 December 2022.
Answered by Nusrat Ghani - Minister of State (Minister for Europe)
This was an informal roundtable discussion, part of a regular series, to discuss the current issues facing the steel sector. The meeting covered a number of topics, including energy costs, decarbonisation support, Government procurement, and trade remedies.
Asked by: Bill Esterson (Labour - Sefton Central)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 26 January 2023 to Question 129769 on Iron and Steel: Energy, if he will publish the outcomes of the meeting with steel trade union representatives held on 24 January 2023.
Answered by Nusrat Ghani - Minister of State (Minister for Europe)
This was an informal conversation in which Community Union set out their ambitions for the steel industry and all parties discussed current issues.
Asked by: Bill Esterson (Labour - Sefton Central)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, Pursuant to the Answer of 31 January 2023 to Question 132361 on Iron and Steel: Manufacturing Industries, if he will make an assessment of the reasons for the difference in the quantity of steel produced in (a) the UK and (b) Germany in 2021.
Answered by Nusrat Ghani - Minister of State (Minister for Europe)
We have not made any assessment of the reasons for the difference in the quantity of steel produced in the UK and Germany in 2021. Any differences will be a result of commercial decisions taken by firms in the two countries.
Asked by: Bill Esterson (Labour - Sefton Central)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make a comparative assessment of the impact of energy costs on steel companies in (a) the UK, (b) Germany, (c) Italy, (d) France and (e) Sweden.
Answered by Nusrat Ghani - Minister of State (Minister for Europe)
Ofgem has previously carried out research on what drives comparatively high GB electricity prices for energy intensive industries (EIIs) and have compared them with selected European countries. They published a report in 2021 which can be found here:
https://www.ofgem.gov.uk/publications/research-gb-electricity-prices-energy-intensive-industries.
The Government has supported the steel sector extensively, including providing over £800m since 2013 to help with the costs of electricity and to support a low carbon transition. The 2022 British Energy Security Strategy announced that the EII Compensation Scheme would be extended for a further 3 years with increased aid intensity, representing a doubling of relief. It also announced that the Government would consider making similar changes to the related EII Exemption Scheme and that we will explore other possible measures to reduce electricity costs for EIIs.
Asked by: Bill Esterson (Labour - Sefton Central)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make an assessment of the reasons for which the quantity of steel produced in the UK has reduced since 2007.
Answered by Nusrat Ghani - Minister of State (Minister for Europe)
Between 2007 and 2021, crude steel production reduced from c.14 million tonnes per annum to c. 7 million tonnes. 3.6 million tonnes of this reduction can be attributed to the closure of the SSI steel site at Redcar which entered insolvency in 2015 with no ability to restart the blast furnaces.
Asked by: Bill Esterson (Labour - Sefton Central)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make a comparative assessment of the steel produced in the (a) UK and (b) German steel industry.
Answered by Nusrat Ghani - Minister of State (Minister for Europe)
The UK steel sector produced c.7m tonnes of steel in 2021, employing c.34,000 (SIC 24.1-3) in the same year. The German steel industry produced c. 40mt in 2021, and in 2020 employed c.125k (SIC 24.1-3). (Sources: World Steel Association, ONS, BG level employment, table 2, Eurostat, Annual Detailed Enterprise Statistics for Industry).