The government has provided British Steel with a £100 million loan to allow the company to pay its EU carbon bill, according to reports.
Earlier this month, the company said it needed to pay its 2018 by the end of April to avoid a big fine from the European Union. According to Sky News, British Steel will repay the government on commercial terms.
Currently, the EU awards free carbon permits to businesses emitting large amounts of carbon emissions. Each permit allows a business to emit one tonne of CO2. However, with growing uncertainty around Brexit, the EU suspended access to these permits for UK companies until a withdrawal agreement is ratified by Parliament.
The Department for Business, Energy and Industrial Strategy (BEIS) said it was in "regular conversation with a wide range of companies" but declined to comment on British Steel.
