Engineering news
The government has confirmed that the steel industry will be given extra time to meet new EU rules on emissions.
The extra time, which is now awaiting final approval, will allow the sector to avoid paying multi-million-pound fines it would otherwise have faced for not meeting the targets quickly enough.
The meeting of EU emissions regulations is one of the top issues the steel industry has said is harming its competitiveness. The EU Industrial Emissions Directive (IED) could have added millions of pounds of additional costs to the industry in January 2016. The UK is pushing for transitional arrangements and derogations in the IED, and both will benefit the steel industry following detailed work between government and steel companies.
Business Secretary Sajid Javid, said: “We recognised the costs these regulations could have and are working with businesses to agree a flexible and common sense way forward that doesn’t damage our competitiveness. Cutting red tape was one of the issues discussed at our recent steel summit and it is important that we are making progress quickly on it. I will also be going to Brussels tomorrow to make the case for firmer action on unfair trade.”
Speaking to a select committee of MPs last night, Gareth Stace, director of UK Steel, said: “This is a good step in the right direction which will be welcomed by steel companies in Britain. It is one of a series of measures promised by the government which are vital to maintain a viable future for the steel industry in the UK.”
The IED places more stringent emissions requirements on industry from January 2016. However member states can designate specific plants to be granted an additional four and a half years to meet the more stringent emissions levels. The UK government has included various steel sites in the UK’s Transitional National Plan, which has now been submitted to the European Commission for approval.
The IED also places a duty on industry to use the best available technology in order to reduce emissions to air, water and land. In cases where the costs would be disproportionate to the benefits, the government can provide derogations at its discretion, based on the evidence submitted. The Environment Agency is close to finalising its permit application for Tata, which will then be subject to consultation, and National Resources Wales have agreed derogations at Port Talbot.
Stace also encouraged MPs at the select committee to take concrete actions to prevent further trauma for the steel industry. He said: “The most concerning thing for the steel industry work force is that we can't take control of this unless we get significant help from the government. We are a highly efficient, innovative and skilled workforce but we have our hands tied behind our backs because of government policy and the European Commission not acting as quickly as it could to stop the massive onslaught of Chinese imports.”
Stace said there are five key actions that the government can take in the short-term to demonstrate its commitment to the UK steel industry. The actions include: fully implementing the Energy Intensive Industry Compensation Package ahead of April 2016, bringing business rates for capital intensive firms in line with their competitors in France and Germany, fully considering derogation requests from the sector on a realistic timetable to meet increased commitments under the Industrial Emissions Directive, continuing to back EU-level action on anti-dumping measures which support the UK steel sector against the rapid rise in global imports; and supporting local content in major construction projects.
“There is a massive future for the sector, but if these points are all delivered tomorrow that wouldn't be it for the sector. We have highlighted these actions as things government can do in the short term.”