The European Carbon Border Adjustment (CBA) mechanism could spare stainless steel products, special steels and tubes, according to a recent draft seen by Kallanish.
The CBA is currently being discussed by European authorities and a formal proposal is expected to be released soon. The mechanism is aimed at creating a regulatory framework to calculate CO2 emissions made during the production of goods outside of the EU.
According to the draft, the system should be applicable for a set of cement, steel, fertiliser and aluminium products, but stainless steel grades, special steels and tubes have not been included as of now.
The European Parliament voted in favour of a CBA mechanism back in March; a specific legislative proposal is expected to be unveiled later this month.
“The measure must fill the gap of the carbon cost differential with global competitors and imports instead of replacing or reducing current levels of carbon leakage protection,” Eurofer head Axel Eggert explained earlier this year. “Higher climate ambition for 2030 and 2050 requires strengthened, not weakened, carbon leakage protection. This can only be achieved if the carbon border measure is implemented as a complementary tool to buttress existing carbon leakage measures.”
At the Kallanish Europe Steel Markets virtual conference on Wednesday, most speakers appeared to support the idea of a CBA to reward investments made by European steelmakers into reducing CO2 emissions.
Daniel Guinabert, director general of EUROMETAL, for example, confirmed that distributors fully understand the need to invest in the environmental transition and bare some of the costs involved. He was less supportive of safeguard measures and other trade restrictions.
Emanuele Norsa Italy
