The EU’s carbon border tax: aluminium trade at risk, steel sheltered
The EU Commission is set to propose a carbon border adjustment mechanism in June. In metals, steel and aluminium are the top two carbon emitters. These industries must decarbonise if the world is going to reach a 2-degree warming scenario. So will the “border tax” clean them up? Working with our sister company, Verisk Maplecroft, we outline how the CBAM will meet the EU’s trade and climate objectives. And we use Wood Mackenzie’s Emissions Benchmarking Tool to assess the outlook on aluminium and steel.