Steel industry united in opposing bloc’s carbon border levy

(EurActiv, 23 Dec 2022) Steelmakers have warned against the EU’s recently-agreed carbon border tariff, saying it won’t protect them from foreign competition and threatens their survival.

As of 2026, importers of raw materials like iron, steel, aluminium and electricity will be subject to the EU’s recently agreed CO2 border tax – the Carbon Border Adjustment Mechanism (CBAM).

This was one of the main outcomes of the negotiation last weekend to reform the EU carbon market, the Emissions Trading Scheme (EU ETS).

The new tariff will reflect the carbon price paid by European manufacturers and progressively replace the free CO2 allowances that steelmakers currently enjoy under the ETS.

As part of the EU carbon market reform agreed last weekend, free CO2 allowances will be entirely phased out in 2034 and replaced by the EU’s new carbon tariff, with the aim of protecting European industry against unfair competition.

But according to industrialists, the new mechanism could have serious repercussions for metalworkers who transform these raw materials.

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EurActiv, 23 Dec 2022: Steel industry united in opposing bloc’s carbon border levy