PBT: Steel Industry Says Climate Plan Is Bad For Business

On Tuesday, President Barack Obama laid out his plan to address climate change, and while the goal is to reduce carbon emissions, a number of industries have come out with statements saying it will also reduce their global competitiveness.

While it’s no surprise the coal industry is upset, the steel industry has come out with its own argument.

According to the American Iron and Steel Institute, the trade association representing the country’s largest steel producers, the plan laid out by the President would place the steel industry at a substantial disadvantage to its foreign competitors.

“The regulations proposed by the President today will invariably raise electricity costs and decrease service quality for major industrial customers, like the steel industry,” Thomas J. Gibson, AISI president said in a statement.

Gibson said the U.S. steel industry is heavily dependent on affordable and reliable energy, which typically accounts for 20 percent or more of the cost of making steel. He said increased costs at home hurt when competing globally against countries like China, where the industry is often state-owned, controlled and subsidized, including electricity costs.

“Policies, like those proposed by the president today, raise energy costs on domestic companies and threaten our ability to remain competitive in this international manufacturing environment,” he said.