The UK Government has published a policy paper this month, laying out its approach to the UK steel industry and marking a line in the sand for new investment, both public and private.

The comprehensive policy statement encompasses a broad approach to changes in steel regulation that affect the industry, including the UK Carbon Border Adjustment Measures (CBAM), tariff quota adjustments, and the imposition of a 50% out of quota tariff rate to be introduced in July this year for steel categories made in the UK that are not in scope in the present safeguarding measures.

Mitigating the risk of carbon leakage

The ministerial statement confirms the introduction of a UK Carbon Border Adjustment Measure (CBAM) to be implemented from January 1^st, 2027.

The UK Emissions Trading Scheme Policy Review page, updated on the 24^th of March, can be found at the link below:

https://www.gov.uk/government/publications/uk-emissions-trading-scheme-uk-ets-policy-overview/uk-emissions-trading-scheme-uk-ets-a-policy-overview

The results of the UK Emissions Trading Scheme Free Allocation Review consultation are published at the link below:

UK Emissions Trading Scheme: free allocation review - GOV.UK

Introducing New Quota and Safeguarding Measures

The statement includes details of an intention to implement tariff rate quota volumes substantially lower than those under the current safeguard. These will be in addition to new quotas on UK-made steel categories not covered by the present steel safeguard, with an out-of-quota tariff rate of 50%.

The full Ministerial Policy statement, published on March 20^th, can be found at the link below:

The UK steel strategy (web version) - GOV.UK