UK Steel has welcomed the agreement between the UK and EU to formally link their Emissions Trading Systems (ETS). The move is expected to reduce trade frictions and improve market access for British steel exports, which account for 75% of the UK’s steel shipments to the EU.
The agreement will exempt UK steel exports from Carbon Border Adjustment Mechanism (CBAM) costs, easing administrative burdens for producers. Additionally, improved EU steel quotas will facilitate exports of steel angles and heavy sections, helping UK manufacturers maintain competitiveness in the European market.
Industry leaders see this as a crucial step in ensuring long-term stability for the sector, particularly as carbon pricing evolves in both regions.
