Global steel giant ArcelorMittal has called on Europe to introduce a green border adjustment, whereby the same CO2 standards will be implemented for steel produced outside of Europe as for European steel. The adjustment will ensure that importers of steel not complying with European Trade System (ETS) CO2 policies will incur additional costs. This way, the company stated, carbon emission reduction policies would be more effective, while the competitiveness of European steel in the market would not be eroded.
In its statement, the company pointed out that steel is a globally-traded material with approximately one third consumed in a different country from where it is produced. Imports into Europe have increased in recent years, standing at 26 million mt in 2018, with imports coming from countries without comparable climate policies.
ArcelorMittal also said it is analyzing the application of new technologies that can have a significant impact in the long run, including carbon capture, storage and use, using renewable carbon and replacing carbon with renewable sources of power. However, the company also cautioned that investment from both public and private sources for the demonstration, scale-up and commercialization of these technologies will be required, as was the case in the European energy sector.