US government officials are said to be proposing to impose tariffs on steel products based on the producing country’s carbon emissions, in order to fight climate change, according to a report by Reuters.
Accordingly, emission intensity standards will be set for the production of certain steel products.
In addition, a proposal from the US Trade Representative’s office is being negotiated with the EU to create a global low-emissions metal club with countries aiming to reduce carbon emissions. Member countries of the club with emissions exceeding intensity standards will pay higher tariffs when exporting steel to countries with lower emissions, while countries with plant emissions at or below the importing country will not pay tariffs. The countries outside the club will be subject to higher tariffs when they export steel to member countries. China, which mostly relies on coal for steel production, will be excluded from the low-emissions metal club.
