EU carbon scheme freeze prompts British Steel to seek £100m loan

British Steel, the owner of the Scunthorpe and Teesside steelworks, is seeking government support to pay a £100m carbon trading bill, in a move prompted by Brexit-related changes to the EU's flagship climate change policy.

The bill for British Steel’s 2018 emissions is due to be paid on 30 April, the deadline having been extended twice already. It had been due on 15 and then 26 March.

Its requirement to surrender allocations under the EU emissions trading scheme (ETS) would normally be covered by a free allocation, intended to prevent carbon leakage and incentivise investment in low-carbon technology. But the firm apparently sold it last year, leaving it unable to pay after the European Commission decided to suspend much of the ETS system in the UK as a result of Brexit.

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