Commenting on the publication by DECC of the 2050 Low Carbon Roadmap for the Iron and Steel sector, UK Steel’s Director, Mr Gareth Stace, said:
“This report marks the culmination of eighteen months of collaboration between the UK’s steel industry, government, academia and NGOs mapping out the possible routes the sector could take over the next 35 years to make the transition to a low-carbon economy.
“It is by no means the end of this process however, but a vital first step in building a comprehensive understanding between industry and government of the decarbonisation options available, the associated challenges and barriers, and the costs of implementation. This first step is in many ways the easiest; the work that comes next in developing the correct policy enablers to bring about this change, and the investment required to enable it, is where the work really begins.
“Emissions reductions in the steel sector rely heavily on breakthrough, and largely unproven, technologies such as carbon capture and storage. The levels of investment required to bring these technologies to fruition are vast and it is vital that industry and government now work together to devise innovative policy interventions that can bring this about. There is currently a significant policy gap.
“Additionally, it is vital that government places considerations of industrial competitiveness at the centre of decarbonisation policy in the future. Central to this is long-term certainty around the compensation package for the pass-through costs of electricity sector decarbonisation, as well as the necessary reforms to carbon leakage measures within the EU ETS.
“As a steel sector we welcome the publication of this report and look forward to working with government on the next steps of the process.”