China Shifting to 'Green' Steel Production as EU Levy Looms...

China Shifting to 'Green' Steel Production as EU Levy Looms (asiafinancial.com)



China has sped up its shift toward ‘green’ steel production, according to researchers, who said no new coal-based steel projects were permitted in the first half of this year.

he move, they said on Thursday, has been done in preparation for the impact of a new carbon levy on exports to Europe. It is expected to join China’s emissions trading scheme this year, and exports to Europe will be subject to the Carbon Border Adjustment Mechanism (CBAM) starting from next year, which could make them 11% more expensive by 2030.

Researchers at China’s Institute for Global Decarbonization Progress (iGDP) said last week that China’s steel industry could face up to 5.9 billion yuan ($811.09 million) in total CBAM levies by 2030, depending on how much it cuts emissions.Traditional blast furnace steel could face levies of around 250 yuan per ton by 2030, but scrap-based EAF would not yet face any additional charge, it said."

Tick tock, tick tock China.