THE Scunthorpe steel industry's three main trade unions have urged the Government and the European Union (EU) to reconsider a 30 per cent carbon reduction target.

Community, Unite and GMB leaders fear current climate change and energy policies threatens the jobs of thousands of steelworkers in Scunthorpe and the rest of the UK.

The lobby comes in the wake of a warning from Kirby Adams, the managing director of Tata Steel Europe, that additional costs likely to be introduced under European legislation will damage the competitiveness of British steel making.

The alarm bells were sounded after a report forecast the total increase in energy bills could be as high as 141 per cent by 2020.

A report by the TUC and the Energy Intensive Users Group (EIUG) states the cost increases present "a major challenge" to the viability of energy-intensive producers in the UK, including the Scunthorpe Corus steelworks.

Michael Leahy, the general secretary of Community, said: "We accept that we must move towards a low-carbon economy, but the hit you take to get these is all important.

"The UK's steel industry is already among the greenest in the world and steel can play its part in the renewable energy projects that will help our transition.

"But to do this we need to counter the threat from 'carbon leakage' that is putting the steel industry and the jobs of our members at risk today.

"The industry is operating under an uncertain and costly regime of climate change and energy policy.

"It means that decisions on essential research and development to green the industry further are being held back while energy prices are increasing."

Mr Adams echoed those concerns.

"Many governments have determined that man-made climate change is one of the most pressing issues the world faces today," he said.

"Corus can be part of the solution through relentless process improvements, investing in break-through technologies and supplying and developing new products that underpin a lower carbon dioxide economy.

"Many of the taxes and costs identified in the EIUG and TUC report are UK-specific and will reduce the competitiveness and Corus's British operations.

"Moreover, the very significant cumulative nature of the additional costs likely to come in under European legislation will damage the competitiveness of all EU steel makers and limit their ability to fulfil their crucial role in a low- carbon future."

Corus in the UK is one of the largest consumers of electricity in Britain, was among nine companies participating in the study which estimated jobs at the Scunthorpe steelworks contributed about £280 million a year to North Lincolnshire's gross value.