The Global Warming Policy Forum is calling on the Government to delay the 5th Carbon Budget and scrap Britain’s unilateral Carbon Floor Price both of which are contributing to the crisis of UK steel and other energy intensive industries.
Along with substantial falls in steel prices, the UK’s uncompetitive electricity prices have been a contributing factor to the closure of steel plants around the country.
Britain’s Carbon Floor Price is a unilateral carbon tax at a floor price of £18 per tCO2. It is more than four times higher than the EU’s current carbon price which is less than £4 (€4.80 on 30 March 2016).
The GWPF has been consistently warning about the rising policy cost of electricity prices which are expected to increase by 47% by 2020 for large industrial energy consumers. The UK’s extra large users of electricity are already paying nearly twice as much for power as the EU average.
GWPF director Dr Benny Peiser said:
“Energy intensive industries – including UK steel – are facing a growing competitiveness crisis. Britain’s unilateral climate policies are racking up electricity prices and are adding to the cost burden.”
“In light of the existential crisis of the steel and other energy-intensive industries, the Government should delay setting new unilateral CO2 targets and scrap the Carbon Price Floor that are hitting UK manufacturers. They also need to bear down on the growing costs of renewable energy subsidies.”