Received from: Community
Congress recognises that domestic steel will be more necessary than ever for building the low-carbon, sustainable economy of the future. Furthermore, if we are serious about decarbonisation and transitioning our economy to net zero, we need a strategic industrial plan with commitments on procurement, energy prices and actions protecting primary steel production in the UK.
Congress believes that a well-implemented Carbon Border Adjustment Mechanism (CBAM) is one crucial measure to help level the playing field on carbon costs for steelmakers in the UK and support decarbonisation of domestic steel production. Ensuring imported steel does not have an unfair price advantage and that domestic steelmakers can continue to produce low- emission steel without being outcompeted by high-emission, imported steel. If the UK CBAM policy is not designed correctly, increased steel imports that didn’t face a carbon price could flood into the UK and undercut our domestic market.
Congress welcomes the measures outlined in the Labour Party’s 2024 manifesto, supporting the implementation of a UK CBAM, and looks forward to working with the government on measures to support the decarbonisation and sustainability of UK domestic steelmaking.
Congress, therefore, calls on the TUC to work with the Labour government on the design and implementation of a robust UK CBAM, which:
i. supports the decarbonisation of domestic steel production, whilst protecting the competitiveness and sustainability of the industry
ii. aligns implementation of a UK CBAM with the EU CBAM timeline, in order to minimise the risk of trade barriers and trade diversion undercutting our domestic market.
Community