The British trade association has called for the UK to introduce a carbon border adjustment mechanism (CBAM) that would come into effect at the same time as the European Union’s, in 2026.
The EU views CBAM as a way to create a market for low-emission steel and help the industry decarbonise. The mechanism will begin its transitional phase in October, initially applying to imports of certain goods and selected precursors whose production is carbon-intensive and at most significant risk of carbon leakage: cement, iron and steel, aluminium, fertilisers, electricity and hydrogen.
Eventually, CBAM could capture more than 50 per cent of the emissions of covered sectors, the EU said.
Due to these carbon costs, UK Steel’s new statistics predicts that 23 million tonnes of steel currently imported into the EU could be diverted towards the UK market.
The UK currently consumes 9 million tonnes of steel a year, meaning massive imports of cheap steel could "crush"...