The European Union's Carbon Border Adjustment Mechanism entered its transitional phase on 1 October 2023, starting a new era for steel trade with Europe. The mechanism, created by Regulation (EU) 2023/956, puts a carbon price on imports of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen, so that imports carry a cost comparable to the one European producers already pay under the emissions trading system. During the transitional phase, EU importers must report the volume of their imports and the greenhouse gas emissions embedded in them each quarter, but they pay no financial adjustment yet. The first report, covering the fourth quarter of 2023, is due by 31 January 2024. For steel exporters, including Chinese mills, the change means that emissions data for every shipment must now be measured and reported by the producer.
Source: European Commission — https://taxation-customs.ec.europa.eu/news/carbon-border-adjustment-mechanism-starts-weekend-its-transitional-phase-2023-09-29_en
Photo: Wikimedia Commons (freely licensed).