Hey there! Sign in to join this conversationNew here? Join for free

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

    • Thread Starter
    Offline

    20
    ReputationRep:
    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then can you increase the duties on Chinese [dumped] steel in the EU.)(Or leave the EU so that the lesser duty rule is no longer applicable.)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 (Leave the EU so the EU ETS is no longer applicable.)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.

    Previous mythbuster:
    http://www.thestudentroom.co.uk/show...5#post66208895
    Next mythbuster:
    Not out yet.
    Attached Images
  1. File Type: pdf Problems in the steel industry paraphrased.pdf (61.0 KB, 37 views)
    • Thread Starter
    Offline

    20
    ReputationRep:
    :bump:
    Offline

    18
    ReputationRep:
    People are ignoring brexiters, they don't like reality and hiding.
    Offline

    14
    ReputationRep:
    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
    Offline

    20
    ReputationRep:
    (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
 
 
 
Reply
Submit reply
TSR Support Team

We have a brilliant team of more than 60 Support Team members looking after discussions on The Student Room, helping to make it a fun, safe and useful place to hang out.

Updated: July 6, 2016
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • Poll
    Brussels sprouts
    Useful resources
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

    Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

    Quick reply
    Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.