The Stuff reported that New Zealand Steel’s holding company Tasman Steel has increased its profit by 153% to NZD 340 million in the year to June while receiving free carbon credits worth NZD 117 million from the New Zealand Government. Tasman Steel’s revenues grew 27% to NZD 1.17 billion in the year to June. While the majority of its output is sold in New Zealand, exports to the United States roughly quadrupled to NZD 107 million.The New Zealand Government provides carbon credits to other large industrial emitters that compete with overseas firms and the steel business, essentially to neutralize carbon costs that were passed through to the company in its electricity bills. The rationale for large industrial exporters being reimbursed is that production could otherwise move overseas at no gain the environmentThe New Zealand subsidiary had told the Productivity Commission in 2017 that steel-making at its Auckland mill would be imperilled if its net carbon cost increased even marginally. NZ Steel had also warned a select committee in 2019 there was a very real risk the Zero Carbon Act, which is intended to reduce the country’s net carbon emissions to zero by 2050, could force it to pull out of Auckland.NZ Steel is ultimately owned by Australian listed company BlueScope.
The Stuff reported that New Zealand Steel’s holding company Tasman Steel has increased its profit by 153% to NZD 340 million in the year to June while receiving free carbon credits worth NZD 117 million from the New Zealand Government. Tasman Steel’s revenues grew 27% to NZD 1.17 billion in the year to June. While the majority of its output is sold in New Zealand, exports to the United States roughly quadrupled to NZD 107 million.The New Zealand Government provides carbon credits to other large industrial emitters that compete with overseas firms and the steel business, essentially to neutralize carbon costs that were passed through to the company in its electricity bills. The rationale for large industrial exporters being reimbursed is that production could otherwise move overseas at no gain the environmentThe New Zealand subsidiary had told the Productivity Commission in 2017 that steel-making at its Auckland mill would be imperilled if its net carbon cost increased even marginally. NZ Steel had also warned a select committee in 2019 there was a very real risk the Zero Carbon Act, which is intended to reduce the country’s net carbon emissions to zero by 2050, could force it to pull out of Auckland.NZ Steel is ultimately owned by Australian listed company BlueScope.
