British Steel May Face $130 Million Hit From Brexit Carbon Hitch
- Manufactuer may need to pay for 2018 carbon permits in March
- Clock ticking down to March 15 compliance day for permits
Photographer: Simon Dawson/Bloomberg
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British Steel Ltd. may face a financial hit of 100 million pounds ($130 million) or more in three weeks if Prime Minister Theresa May is unable to secure a Brexit deal, two people familiar with the matter said.
The costs relate to the private equity-owned steelmaker’s carbon pollution bill for 2018, which is due by March 15, according to the people, who declined to be identified discussing a commercially sensitive matter. British Steel is the most prominent name on an official analysis detailing U.K. companies affected by a European Union decision to freeze the allocation of free carbon permits that can be used to comply with the rules.