The EU’s proposed carbon tariff gets a mixed reaction from industry

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Firms’ reaction to a carbon tariff has been mixed. Many profess to support the energy transition but gripe about the rules. Others say they welcome them

’s executive arm proposed new rules to help the bloc meet its goal of cutting emissions by 55% from levels in 1990 by 2030. One proposal would withdraw free allowances for producers of aluminium, cement, fertiliser, iron and steel, and levy import tariffs on these products based on their carbon content. This “carbon border adjustment mechanism” aims to level the playing field.

Firms’ reaction has been mixed. Many profess to support the energy transition but gripe about the rules. Others, including LafargeHolcim, a Swiss cement giant, say they welcome them. Still, Cédric de Meeûs of LafargeHolcim notes that although cement-makers do not now pay for all their pollution, the rising price of carbon in Europe makes-made cement pricier than foreign stuff. As a result, the bloc imported 25% more cement in 2020 than in 2019.

Some trade groups are responding by lobbying lawmakers. With some success: in March the European Parliament passed a non-binding vote to keep the free allowances. Others will hedge by buying extra allowances when carbon prices are low, as power companies now do routinely. A few are reacting as the plan intended: by trying to decarbonise. In May Thyssenkrupp of Germany teamed up with the Port of Rotterdam to import renewable hydrogen to make green steel. Antoine Vagneur-Jones of BloombergDecarbonisation is costly. Mr de Meeûs says that making cement with a third less carbon adds some 15% to the cost. ArcelorMittal, the world’s biggest steelmaker and one of Europe’s largest emitters, expects to invest an extra $10bn to cut carbon by 2030.

This article appeared in the Business section of the print edition under the headline "A green and level field"

 

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chrispydog Funny (not funny) how that works

In their noble attempt to limit CO2 emissions the West governments are strangling their industries giving a financial edge to their foreign competition. The earth ends up with the same amounts of CO2 and pollution, if not more, emitted to produce the same products.

Amazing that we’d send humans to Mars & talk about colonies there, which would cost many $trils, but the 🌎balks at making the same investment in a planet that we know is habitable & can be saved from the destructionof climate change.

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