UK Steel - Submission to consultation on Free Allocation Review: Carbon leakage

10 March 2025

UK Steel welcomes this consultation. The UK ETS Authority must recognise the integration of the EU and UK markets for industrial products and, thus, the implications of applying different rates of free allocations. If the Authority decides to provide lower or no free allocations to sectors that receive free allocations in the EU, then UK businesses will be actively disadvantaged compared to their EU counterparts.