UK Steel welcomes government CBAM consultations
UK Steel has welcomed the UK government’s launch of consultations on a Carbon Border Adjustment Mechanism (CBAM) and other carbon leakage-mitigating measures.
The consultation will take place from 30 March to 22 June and is open to all interested parties in the UK and internationally. Part 1 sets out potential measures that the government could introduce to mitigate the carbon leakage risk in future, including CBAM and mandatory product standards. Part 2 sets out proposals on design and delivery features of embodied emissions reporting that could underpin future carbon leakage policy measures, according to a government notice.
“The vast majority of the world’s steel producers face no carbon costs, whereas UK steel producers faced an estimated £120 million [$148m] last year in carbon costs, dealing a damaging punch to our competitive position. We need a level playing field where imported and domestically produced steel face similar carbon costs, and a Carbon Border Adjustment Mechanism (CBAM) can deliver just that,” UK Steel director general Gareth Stace says in a note sent to Kallanish.
“As the UK steel industry moves in its transition to green steel production, it is essential that it will not be continually outcompeted by high emission, imported steel. Europe is implementing its own CBAM, and the UK risks a damaging trade barrier with our biggest trade partner if we don’t quickly develop and implement our own measures. Failure to do so, could mean steel made here in the UK is blocked from being sold into the EU,” Stace concludes.
Adam Smith Poland