ArcelorMittal calls for carbon tax law on EU imports

Currently within the EU, energy-intensive industries including steel producers, pay a carbon cost under the EU Emissions Trading System. But this does not apply to steel producers from markets outside the EU who can sell steel with comparable or often significantly higher, carbon emissions, at a lower price.

ArcelorMittal has called for European Union member states to support introduction of a carbon border adjustment (CBA), as part of the European Commission’s e1-trillion Green Deal, aimed at making the bloc carbon neutral by 2050.

In a document published recently, titled ‘Creating a low carbon world, the case for a Carbon Border Adjustment’, ArcelorMittal said it believes a CBA should be one of the first Green Deal measures adopted by the new European Commission, as it will help to create the market conditions and protections needed for companies to make investments and transition to carbon neutrality without disruption.

A key recently developed technology uses Hydrogen as a reducing agent instead of coking coal thereby averting the creation of CO2, and producing H2O (water) instead.

ArcelorMittal is also developing technologies to make low-carbon steel that would its European operations reduce carbon emissions by 30 percent by 2030 and then emerge carbon neutral by 2050.

“But we need the right legislation to make this change. That is why we are calling for a Carbon Border Adjustment that shares the burden fairly and supports all of us who are committed to reducing carbon emissions,” the group said.

Currently within the EU, energy-intensive industries including steel producers, pay a carbon cost under the EU Emissions Trading System (ETS).

But this does not apply to steel producers from markets outside the EU who can sell steel with comparable or often significantly higher, carbon emissions, at a lower price.