Carbon border adjustment mechanism’s effects on steel imports: A literature review
Rissanen, Martti (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024060521177
https://urn.fi/URN:NBN:fi:amk-2024060521177
Tiivistelmä
Carbon border adjustment mechanism (CBAM) is a current topic concerning businesses inside and outside of the EU. Actual effects of CBAM will be realized once the mechanism takes full effect. However, to understand the mechanism and its possible effects initial research must be conducted.
This literature review of CBAM’s effect on steel imports explores the mechanism, steel production and its emissions, as well as provides estimates on CBAM’s financial impact and other challenges that EU importers face.
Research conducted by the EU concluded that the financial effects of CBAM’s implementation are not significant, and its implementation is essential to prevent carbon leakage. Although initial challenges caused by implementation of CBAM for the importers and authorities are recognized, EU has concluded that their effect are not a considerable risk to EU economy. Estimate of a price increase of iron and steel products under CBAM is 150 to 160 € per ton of steel purchased from outside of the EU.
This literature review of CBAM’s effect on steel imports explores the mechanism, steel production and its emissions, as well as provides estimates on CBAM’s financial impact and other challenges that EU importers face.
Research conducted by the EU concluded that the financial effects of CBAM’s implementation are not significant, and its implementation is essential to prevent carbon leakage. Although initial challenges caused by implementation of CBAM for the importers and authorities are recognized, EU has concluded that their effect are not a considerable risk to EU economy. Estimate of a price increase of iron and steel products under CBAM is 150 to 160 € per ton of steel purchased from outside of the EU.