Source: Steel Times International
The European Union's decision to suspend UK firms' access to free carbon permits until a Brexit withdrawal deal is ratified is behind British Steel's decision to seek a £100 million loan from the British Government, according to a recent news report from the BBC.
The report, which appeared on yesterday's BBC website, also states that 'there is no danger to British Steel sites or jobs'.
According to the BBC report, 'British Steel is seeking a £100m loan from the government in order to meet EU emission rules'.
"The EU's emissions trading system's rules allow industrial polluters to use carbon credits to pay for the previous year's emissions, or trade them to raise money. Each free permit gives a firm the right to emit a tonne (1,000kg) of carbon dioxide (CO2), and they can be traded for money," claims the BBC report.
British Steel claims that it is discussing the impact of Brexit on its business with ministers and officials from the Department for Business, Energy and Industrial Strategy (DBEIS) and is in talks with Department for Business about financial assistance.
The DBEIS claims that it is always in discussions with 'a wide range of sectors and companies' as part of its remit as a business department.
British Steel has until 30 April to comply with EU emission rules.