ArcelorMittal called for Europe to introduce a green border adjustment whereby steel imported into Europe has the same standards applied on CO2 as European-produced steel under the Emissions Trading System (ETS) regime. The adjustment would call for any shortfall in CO2 emissions to be compensated by the importer.
Following the implementation of phase 4 of the ETS, European steel producers will incur additional costs than that of companies producing in other regions of the world and are not obliged to pay when importing into Europe.
As a result of global overcapacity with imports from countries without comparable climate policies in 2018 imports of Steel into Europe have increased in recent years, standing at approximately 26 million tonnes on an annualised basis.
Aditya Mittal, President and CFO of ArcelorMittal, said: âThe introduction of a green border adjustment is critical to create a level playing field from which to drive genuine improvement. The current system will not change how steel is made, only where steel is made. Europe will continue to need as much steel as ever, but the likelihood is more of this steel will come from countries that do not have comparable climate policies. That may enable Europe to claim the emissions of its production has reduced but that is meaningless when it doesnât address the emissions of what it consumes. There are no continents in the sky and while the contributions of individual countries are important, there must be measures to prevent carbon leakage in globally traded materials like steel. I am convinced that we can help make a real and positive difference, but only if we have the right polices in place to support a level playing field and incentivise and support investments in potentially transformation technologies. I since
rely hope that Europeâs policy makers can see the logic and rationale for this and will give it serious consideration.â?
