Labour pledges £3bn investment for green steel

Today, Keir Starmer is meeting with steelworkers and union representatives at Port Talbot steelworks to emphasise Labour’s support for the steel sector

Labour leader Keir Starmer is meeting with employees and union representatives at Port Talbot steelworks today, reiterating Labour‘s commitment to the steel sector.

The Labour Party has promised a plan for “green steel“, including a £3 billion investment via a National Wealth Fund, aiming for nearly emission-free steel production by 2035.

Keir Starmer’s visit to Port Talbot comes on the heels of a recent deal between Tata and the UK government concerning the site’s future.

This deal suggests a shift towards an electric arc furnace (EAF) model, potentially at the cost of 3,000 jobs.

Community, the steelworkers’ union, has criticised this arrangement as shortsighted and calls for a thorough exploration of alternative decarbonisation options for the site.

Community emphasises that a switch to an electric arc-only model would necessitate the import of primary steel from heavily polluting overseas producers, making the industry no longer self-sufficient.

Furthermore, it could lead to the closure of downstream steel sites such as Trostre and Llanwern, which cannot be supplied by EAF.

General Secretary of Community Union, Roy Rickhuss, stated: “Keir’s visit demonstrates Labour’s commitment to our steel industry and an ambitious decarbonisation strategy.”

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