Will the Minister provide an update on what support is being offered to the Welsh steel industry to bring it in line with the EU’s carbon border adjustment mechanism?
The EU’s Carbon Border Adjustment Mechanism (CBAM) is a reserved matter.
The steel industry is already subject to carbon pricing through the UK Emissions Trading Scheme (ETS), which we expect CBAM to respect. The ETS also recognises the steel sector is trade exposed, which is why it is in receipt of a high proportion of free emission allowances within the ETS.
We are committed to supporting our industrial sectors to transition to Net Zero. That is why last year we established Net Zero Industry Wales (NZIW) which will support Welsh Government to champion our industrial assets on the net zero pathway.
NZIW is working with business and academic partners operating in a wide range of energy and carbon intensive industries including steel, to help decarbonise industrial processes and facilitate the essential collaboration between industry, academia and government to accelerate the journey towards net zero.
We will continue to work collectively with the steel industry, unions and the UK Government to support the transition to low-carbon steelmaking and a sustainable future for the steel sector in Wales.