Eurofer welcomes European Parliament carbon border tax support

Eurofer has welcomed a vote in the European Parliament in which a vast majority supported a carbon border adjustment mechanism resolution.

The resolution marks a step forward towards a legislative proposal expected to be presented in June, aimed at protecting European borders from carbon leakage. While the outcome of the process towards an effective carbon border adjustment tax is not yet sure, Eurofer again voiced its support for it.

“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 tells Kallanish. “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. We welcome that elected MEPs recognised this.”

European steelmakers are worried that free allocations of CO2 certificates are being faded out and they could face further competition if a scheme to protect Europe’s borders from carbon leakage is not implemented.

Emanuele Norsa Italy