UK Steel Association Calls for Early Implementation of CBAM

In a climate of increasing calls from major steel producers in the developed world for protective measures, the UK steel industry has also made a strong plea for governmental support. The UK Steel Trade Association (hereafter “the Association”) has recently issued an election manifesto advocating for the prompt implementation of strategies to create a level playing field and enhance the competitiveness of the UK steel sector.

Gareth Stace, Director General of the Association, has highlighted the significant challenges confronting the UK steel industry, citing diminished competitiveness and a surge in imports as primary concerns. “The steel industry is the backbone of the economy, yet nearly 70 percent of the steel used in the UK is imported. This paints a bleak picture for the future of the UK economy,” he stated.

Stace further elaborated on the economic importance of the sector, noting, “Our country’s steel sector is a crucial part of the economy. The steel industry contributed £1.8 billion ($2.29 billion) to the UK economy and added £2.4 billion through the supply chain, with an additional £3.4 billion to the UK’s balance of trade.”

In preparation for the 2024 general election, the Association has called for the implementation of seven key policies, an expansion from the six key policies advocated in its 2019 manifesto. These policies include:

1. Ensuring industrial electricity prices are competitive with those in rival nations.
2. Reforming the wholesale electricity market.
3. Supporting the competitiveness and recycling of the electric arc furnace (EAF) scrap industry.
4. Investing in decarbonization through government-industry partnerships.
5. Ensuring the swift implementation of the Carbon Border Adjustment Mechanism (CBAM) by 2026, a year ahead of the government’s planned deadline of 2027, to shield the UK steel industry from import pressures.
6. Guaranteeing that steel used in public infrastructure projects constitutes more than 10 percent of the UK’s total steel demand.

With the UK general election slated for July 4, current polling data shows the opposition Labour Party leading. Local steel industry insiders have noted the heightened attention being paid to the Association’s manifesto by the political sphere. There is a widespread consensus on the necessity of safeguarding the national steel industry, indicating that the implementation of the UK CBAM may accelerate irrespective of the election outcome.