European steel importers to face high extra cost by 2030 due to carbon taxes
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Update time : 2022-08-11 22:04:16
Boston Consulting Group (BCG), the US management consulting firm, said the EU's carbon tax will be implemented in 2026 along with the Carbon Border Adjustment Mechanism (CBAM).
As of 2030, European steel importers will face additional costs of about €2 billion per year. At that time, the EU's carbon price was expected to exceed €100/ton. The costs will depend on the carbon efficiency of each producer.
BCG analyzed that by 2032, the cost of steel imported to the EU from the US and the UK will increase by 6%. Besides, the cost of imports from Turkey, South Korea, China, and India will rise by 10%, 12%, 17%, and 32%, respectively.
As the CBAM covers more and more goods, inflationary pressures will increase.
