14:30 Graham Stuart (Conservative)

That the Committee has considered the draft Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2023.

The UK emissions trading scheme—the UK ETS— was established under the Climate Change Act 2008 by the Greenhouse Gas Emissions Trading Scheme Order 2020 as a UK-wide greenhouse gas emissions trading scheme to encourage cost-effective emissions reductions, contributing to the UK’s emissions reduction targets and net zero goal. The scheme is run by the UK ETS Authority, a joint body comprising the UK Government and the devolved Governments—we are all in this together. Our aim is to be predictable and responsible guardians of the scheme and its markets. In so doing, we will ensure that the scheme remains a cornerstone of our ambitious climate policy.

A consultation was not carried out for the CCS free allocation amendment as that is a clarification of existing policy intention and not a change to the policy.

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14:50 Stella Creasy (Labour)

More fundamentally, I wish to speak up for British steel, which will be directly impacted by this legislation; indeed, it has called for the Government to answer questions arising from the SI. I hope that I speak for all of us in the room in saying that we recognise the value to our national security and our climate change objectives of having a national steel industry. I understand the industry’s concerns about this legislation and the fact that, without support, the free allowances will not lead to the sustainability of the British steel industry. I hoped that we might hear some answers today, but the Minister did not mention the word “steel”. I am sure he will wish to correct that in responding to the debate. The industry thinks it will take nine years to decarbonise British steel at this rate; without support, the 2026 deadline could lead to the end of British steel and all the concerns that might arise from that.

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