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Iron and Steel: Carbon Emissions

Question for Department for Business, Energy and Industrial Strategy

UIN HL3850, tabled on 8 November 2021

To ask Her Majesty's Government what plans they have to introduce a steel sector deal (1) to help UK producers compete internationally, and (2) to provide long-term, sustainable policy support for the steel industry to transition to a low-carbon future.

Answered on

18 November 2021

The Government recognises the vital role that the steel sector plays in our economy and across all areas of the UK. We are keen to secure a competitive and viable future for the sector and have already provided it with extensive support, including ​more than £600 million to help with the high cost of electricity.

In order to help UK steel producers to compete internationally, the Government is providing funding for a programme of research and innovation delivered bythe Materials Processing Institute, which will help the UK steel and metals sector to improve efficiencies and reduce emissions.

In addition to this, we are also providing up to £66 million in taxpayer support as part of the Industrial Strategy Challenge Fund to help key foundation industries, such as steel, to develop innovative technology to reduce energy and resource use. We have also established the £315 million Industrial Energy Transformation Fund, which aims to support businesses with high energy use to cut their bills and reduce carbon emissions.

In October 2021, we published the Net Zero Strategy, which committed to provide further support for research and innovation through the Net Zero Innovation Portfolio, which is a £1 billion fund that aims to accelerate the commercialisation of low-carbon technologies, systems, and business models in power, buildings, and industry. Initiatives led by the Industrial Decarbonisation Research and Innovation Centre will support the fuel switch to low carbon hydrogen on industrial sites.