CHANGES that could prove “devastating” to the region’s steel industry will be agreed within days, the Government was warned today (Tuesday).

Tom Blenkinsop, the Middlesbrough South and East Cleveland MP, raised the alarm over looming talks to agree the next stage of ‘green taxes’ for energy intensive industries.

Next week’s EU summit will debate 2030 targets for tackling climate change and tough new cuts to carbon emissions – perhaps 40 per cent, from 1990 levels.

The move is a staging post towards a 200-nation summit in Paris next year and a renewed bid to strike a new worldwide deal to limit global warming.

But, leading a Commons debate, Mr Blenkinsop said it would be a blunder to try to take cuts beyond what was “technologically achievable”.

The Labour MP listed two key flaws in the EU emissions trading scheme:

  • No integrated steel plant in the UK will be able to meet the EU’s benchmarks for emissions performance until the early 2030s – and then only with “massive investment in plants”.
  •  It failed to respond to changes in the economy and individual companies’ activities – which left expanding companies, including SSI, “short of allowances”.

Mr Blenkinsop told ministers: “Pushing production, and investment, out of Europe will not meet goals to re-industrialise our economy “It also puts local supply chains at risk, and is counter-productive from an environmental perspective as imports are likely to have a larger carbon footprint.”

Referring to the summit, he said: “January 1, 2021 marks the start of a new phase of the EU emissions trading scheme and a new set of emission reduction and energy targets to see the EU through to 2030.

“Whilst these dates may seem some time away, the decisions are very likely to be taken in a matter of days at the EU summit.”

In reply, culture minister Ed Vaizey – standing in for the business department, for an unexplained reason – argued there would be “months or years” to argue about targets for 2030.

And he vowed: “The Government will do all it can to support the steel industry, particularly with some of the hurdles and obstacles it faces with fair competition.”

Earlier this month, SSI - which runs the former British Steel works at Redcar – was forced to reassure workers at the plant after another year of massive losses.

SSI UK reported an annual deficit of $309.4m (£193.5m), down from $439.2m (£275m) losses the previous year – leading its accountants to voice “significant doubt” the company can continue as a going concern.

The Redcar works, which employs 1,800 people, still depends on funding from its Thai owner, and a syndicate of banks, to meet day-to-day costs.

On Redcar, Mr Vaizey told MPs: “It’s clear there are challenges ahead, but the situation is not as serious as recent press reports suggest.”