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Moneycontrol Pro Panorama | UK's carbon border tax proposal poses risk for global steel industry

In today’s edition of Moneycontrol Pro Panorama: India’s productivity rises but employment suffers, Australia effectively regulates Big Tech, Eurozone avoids recession but problems persist, and more

January 24, 2023 / 03:21 PM IST
Representative image.

Representative image.

Dear Reader, 

Tata Steel’s investors may be keenly watching for the outcome of UK’s steel industry bailout. While the UK government being called to rescue businesses in the name of protecting employment may seem like a replay of an old movie, this time it’s a bit different. These UK steel makers need to invest in greener steel-making facilities to make low-carbon steel, requiring huge investments.

Since their existing financial condition is precarious, due to legacy issues, higher energy costs and a slump in steel prices, they have threatened to shut operations if they don’t receive support. The government is being forced to act to protect employment and to retain some primary steel making capacity within the UK.