The European steel industry is actively working towards developing a
market for lower CO2 emission steel. This involves implementing new production
processes and offering new products. However, one major challenge that the
green steel market faces is the lack of standardization.
The European Commission’s energy transition agenda
includes the standardization of carbon-accounted products as a crucial item.
Another important action item on their agenda is the implementation of the
Carbon Border Adjustment Mechanism (CBAM). This mechanism is expected to have
an impact on the sources and prices of steel imports.
S&P Global Commodity Insights conducted an interview with experts to gain
insights into the CBAM and how the European steel industry is navigating the
uncharted waters of green steel trading. Laura Varriale, the Managing Editor of
Ferrous Metals EMEA, spoke with Maria Tanatar, the Senior Editor of Flat Steel
Europe, and Roman Kramarchuk, the Head of Future Energy Outlooks.
The CBAM is a significant development in the
European steel industry as it aims to address the issue of carbon emissions
associated with imports. It is expected to impose costs on steel imports based
on their carbon content. This would ensure that imported steel meets the same
environmental standards as domestically produced steel.
Standardization is a critical factor in the success
of the green steel market. It would provide a common framework for evaluating
the environmental impact of steel products and encourage the adoption of
cleaner production processes.
The European steel industry recognizes the importance of the CBAM and is
actively engaging with policymakers to shape its implementation. They emphasize
the need for a fair and level playing field for both domestic and imported
steel.
In conclusion, the European steel industry is
working towards a greener future by developing lower CO2 emission steel.
However, the challenge lies in standardizing carbon-accounted products and
navigating the upcoming implementation of the Carbon Border Adjustment
Mechanism.