The government has been urged to scrap “unilateral climate policies”.
The Global Warming Policy Forum (GWPF) has asked the Tory administration to delay the 5th Carbon Budget and get rid of the Carbon Floor Price (CFP).
That’s because they are contributing to the crisis of the nation’s steel sector and other energy intensive industries.
According to the GWPF, the country’s CFP is at a floor price of £18 per tonne of CO2 – more than four times higher than the EU’s current carbon price which is less than £4.
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, it added.
The GWPF claims it 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.
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.”
Conservative MP Peter Lilley said the crisis the steel sector is facing in the country is due to “high energy costs“.