Decarbonisation journey at British Steel is a litmus test on just transition for the Government
The pathway towards decarbonisation at British Steel is a litmus test for the Government as to how much of an appetite there is for a just transition.
Steelworkers' union Community has unveiled a plan to secure a future for British Steel in Scunthorpe - the UK's last remaining blast furnace steelworks.
The plan would involve the continued operation of Scunthorpe's two existing blast furnaces whilst two new electric arc furnaces (EAFs) are constructed on site.
It’s a plan that would require an additional £200m of Government support to mitigate carbon costs in the interim period.
This presents an opportunity for the Government to put down a pragmatic marker in Britain’s drive towards decarbonisation.
Money is tight but the consequences of inaction would be much more costly down the line.
The failure to deliver a just transition will not only devastate communities but also undermine net zero. It would seed wider resentment against net zero amongst these communities.
Lessons from the coal mine closures of the 1980s need to be learnt. Many former mining towns are still feeling the effect of the closures today. The Government needs to bring all communities along on the journey.
And this plan put forward by the steelworkers’ union Community would help avoid a cliff-edge for the workforce.
There is also the need to keep skills and expertise employed so that they can be developed and redeployed towards greener steelmaking.
The importance of steel security cannot be overlooked either. If the Government is looking to unleash a housebuilding boom, then steel needs to be a priority.