Carbon Border Levy is the Start to Greener Steel

Release time：Oct 31, 2019 From：admin

Reuters reported that ArcelorMittal said that a proposed EU carbon border tax is a vital first step to enable the industry to introduce low carbon technology and help reach the Paris agreement of curbing climate-warming emissions. Mr Alan Knight, GM in charge of corporate responsibility, said “The ideological principle has been accepted. The carbon border adjustment is about making progress to implement the Paris Agreement. We are trying to solve a problem before it’s happened - a higher carbon price could inevitably cause steel production to move to countries where emission standards are lax compared to Europe.

ArcelorMittal sees a chance of success now the new European Commission, in office from November, has accepted the idea and appointed three separate departments to work on it. In Europe steelmakers must comply with the bloc’s Emissions Trading System, where pollution permits are trading around 25 euros a tonne. Until now, the Commission has handed out free ETS permits to tackle industry’s complaints it is subject to carbon leakage, the term used to refer to the possibility high EU compliance costs will drive manufacturing to cheaper parts of the world. From 2021 companies will receive fewer free permits.

Around two tonnes of carbon dioxide are emitted for every tonne of steel made. With around 1.7 billion tonnes produced annually, the sector accounts for around 7% of global emissions