Steel bedrijfsnetwerk bronbelastingopslagplan

Is iron and steel a target for the CBAM?

The iron and steel sector is the main target of the forthcoming CBAM due to the industry’s energy-intensive consumption with high carbon dioxide (CO 2) emissions. However, minimal existing research has been conducted in this regard.

Is Europe a threat to the steel industry?

For the steel sector, Europe's resolution is nothing less than a threat to its very existence. After all, the industry is responsible for around four percent of all carbon emissions in Europe. If only industrial emissions are considered, the figure is as high as 22 percent.

What will happen if the steel industry fend for itself?

If the steel industry has to fend for itself on this task, the prices of its end products will have to be raised enormously, which will make it internationally uncompetitive. The exodus of an entire branch of industry or at least the upstream production will be the result.

How will the EU CBAM affect steel trade?

The EU CBAM will have numerous impacts on major steel-trading nations. Overall, the imposition of EU carbon tariffs will have a negative impact on the GDP, social welfare, iron and steel production, and trade balance of most countries, but will have a positive impact on reducing CO 2 emissions.

Why does the European steel industry need operational changes?

The sector is highly exposed to international trade and global excess capacity. The European steel industry needs operational changes in the short-term and strategic decisions towards economically viable and climate-neutral transformation in the long term.

What role does steel play in achieving EU climate goals?

The steel industry is responsible for around 7% of the global CO2 emissions; hence the decarbonisation of this sector plays a key role in achieving the European Union's (EU) climate goals for 2050.