If approved, the government-proposed levy of 70.68 pesos (US$5.40) per ton of carbon dioxide (part of the federal tax reform proposal) would cost Mexican steel companies at least US$1.28 million per year, according to the National Chamber of the Iron and Steel (CANACERO).
The figure was calculated based on an expected total steel production level of 18.095 million tons in 2014 (similar to 2012 levels), taking into account that for every ton of metal produced, 1.3 tons of carbon dioxide is emitted.
Therefore, the sector emitted 23.5 million tons of CO2, in 2012, just over half of the 40 million tons emitted by Petroleos Mexicanos (PEMEX) during the same year. CANACERO argues, however, that the level of 1.3 tons of CO2 per ton of steel produced in Mexico is below the world average, which stands at 1.8 tons.