UK government loans British Steel 120 million pounds for EU carbon costs

FILE PHOTO: A steel sample is taken by a worker at the SSI steel plant at Redcar, northern England May 29, 2012. REUTERS/Nigel Roddis - Copyright Nigel Roddis(Reuters)

By Reuters

Published on 01/05/2019 - 15:34•Updated 25/04/2024 - 03:32

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LONDON (Reuters) - The British government said on Wednesday it will loan British Steel around 120 million pounds to cover the costs of complying with European Union's Emissions Trading System (ETS).

British Steel is the second biggest steelmaker in Britain. The ETS charges power plants and factories for every tonne of carbon dioxide (CO2) they emit.

Energy minister Greg Clark said that without the loan the company would have been subject to a fine of almost half a billion pounds, putting it under significant financial strain.

(Reporting by Nina Chestney; Editing by Catherine Evans)

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