Changes to the EU's public procurement rules for low-emission metals are likely to affect at least steel and will be adopted by the end of the month as part of the Law on Accelerating Industrial Production, said Valer Moutarlier, Deputy Director General for Internal Market, Industry, Entrepreneurship, Small and Medium-sized Businesses. - this was reported by representatives of large enterprises (SMEs) in the European Commission.
Moutarlier hinted at the long—awaited update of the procurement rules on Thursday, January 15, during a panel discussion at the Future Minerals forum in Riyadh, Saudi Arabia.
Speaking about the willingness to pay for premium environmentally friendly metal and how regulation can help encourage consumption of low-carbon metals, which are often sold at a higher price, the official said the EU is now considering the issue.
"Later this month, we will introduce our Law on Accelerating Industrial Production, trying to link green products with government procurement or subsidy plans so that there are incentives that we, as a regulatory body, can use to bridge the gap," Moutarlier said.
"We need to be selective, and we will probably start at least with green steel in our proposal later this month. This is not something that we can impose on everyone in different projects and for different materials," Moutarlier added.
The Expert Group also discussed other incentives that could help implementation, such as the proposed minimum price level for essential minerals that would help stimulate the market.
Trading in green metal premiums in Europe remains slow amid economic weakness, which continues to be an obstacle to receiving premiums in the absence of commitments.
Fastmarkets' weekly estimate of the difference in carbon dioxide emissions reduction from rolled steel for Northern Europe on Thursday was 40-50 euros (46-58 dollars) per ton, which is stable week to week.
Fastmarkets' monthly estimate of low-carbon aluminum differential P1020A, Europe as of January 2 was $0-30 per ton, up from $0-20 per ton on December 5. For comparison, the European premium for low-carbon products lags behind the Asian one: on January 2, Fastmarkets' aluminum premium for low-carbon products P1020A, Japan, and South Korea was estimated at $40-85 per ton, which is stable compared to the previous month.
According to the panelists, as more attention is being paid to the costs of carbon emissions, plans such as the carbon boundary adjustment mechanism may provide an incentive to purchase lower-emission materials.
