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EU mythbuster #2: EU is not at all at fault for the steel industry crisis in Britain

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Why bother with a post grad? Are they even worth it? Have your say! 26-10-2016
    • Thread Starter

    I had this ready days ago, but I haven't been able to access my computer.

    Feel free to use as copy pasta for Remainiacs.
    This also explains the unfairly high energy prices in the UK.

    Must read: Read the document attached for context to the problems, as the following part are mainly possible solutions. The document also includes the sources.
    1. Increase green taxes, VAT (and other possible taxes), or price of labour in China, to increase compliance costs, to increase the cost of production.
    2. Raise awareness of China’s damage to the environment, or China’s cheap and unfair wages, so people buy elsewhere, and companies can price discriminate.
    3. Increase domestic demand for steel in China / increase demand of steel worldwide. Persuade local governments in China to inhibit their steel industry.
    4. Reform the lesser duty rule in the EU (only then can you increase the duties on Chinese [dumped] steel in the EU.)(Or leave the EU so that the lesser duty rule is no longer applicable.)
    5. Reform ownership structure of Tata Steel in Europe, so that long-term strategic decisions can be made regarding the reduction of carbon emissions.
    6. There should have been a gradual increase in the carbon floor price; instead there was a sudden increase in the carbon floor price from £9.54 to £18.08 per tonne of CO2 in April 2016. Energy providers could have competitively lowered energy prices (irrelevant in the context of carbon produced by Tata Steel, because Tata Steel had enough free allowances to not have the need to buy auctioned allowances.)
    7. Reform the EU ETS so that free emissions allowances are given to the power sector. (The power sector isn’t entitled to any free allowances, and considering the sudden increase in the carbon floor price, that was a disastrous move.)
    8. Reform future phases of the EU ETS so that there were no longer concerns by the UK government (said on the UK government website on EU ETS) that the government would no longer be able to sufficiently compensate companies significantly prone to carbon leakage for the transferred increase in energy prices because of the EU ETS. Uncertainty was created.
    9. (Leave the EU so the EU ETS is no longer applicable.)
    10. A simple regulatory framework would be good (there’s both the EU ETS and Climate Change Levy UK law to which to comply.)
    11. EU should increase funds to decarbonising technologies; funds are not enough for the steel industry.
    12. Leave EU, then use net contribution to fund the decarbonising technologies.
    13. There’s a solution called dynamic allocation I haven’t read much into. http://www.ecofys.com/files/files/ec...the-eu-ets.pdf
    14. David Hone at Shell said it was supposed to be a 40-year policy and so it should be left to do its job, and that a cap and trade approach becomes largely redundant because the economy sought sharp reductions.
    Tada! Sorry for the bad formatting. Use as copy pasta to Remainiacs.

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    Attached Images
  1. File Type: pdf Problems in the steel industry paraphrased.pdf (61.0 KB, 12 views)
    • Thread Starter


    People are ignoring brexiters, they don't like reality and hiding.

    It's hard touse a word like "remainiacs" without sounding incredibly childish.

    Considering the UK lobbied to prevent higher tariffs on imported Chinese steel, I don't think we would have been much better off outside the EU
    • Thread Starter

    (Original post by tengentoppa)
    It's hard touse a word like "remainiacs" without sounding incredibly childish.

    Considering the UK lobbied to prevent higher tariffs on imported Chinese steel, I don't think we would have been much better off outside the EU
    Did you not read the rest of it? :eyeball:

    Tariffs aren't the only factor at play.

    Posted from TSR Mobile
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