UK Metals Expo: Concerns remain about understanding CBAM
Delegates remain concerned about the lack of clarity and understanding regarding the Carbon Boundary Regulation (CBAM) mechanism, as well as the volume of products included in it, as they heard during a discussion at the UK Metals Expo in Birmingham last week, which Callanish participated in.
Frank Aaskov, Director of Energy and Climate Change Policy at UK Steel, drew attention to the lack of information about the mechanism.
"We still lack key information from the European Union and the Commission on the use of default values," he said.
"There is a very low level of knowledge among[EU]importers about what is actually required to comply with the requirements. What are the potential financial obligations when buying steel outside the EU from January 1 next year?" he noted. "There is a general lack of information and a general lack of experience in the practical application of CBAM requirements. I don't think the European Commission has helped itself by publishing a lot of information so late."
Aaskov added that CBAM's webinars and stakeholder engagement were aimed at raw material producers, not steel importers.
He continued that despite the fact that CBAM has had a transition period of one and a half years, the necessary information and awareness have not been sufficiently disseminated. Market participants do not know what their financial obligations for steel imports from non-EU countries will be after January 1.
He also expressed concern that steel-containing products do not fall within the current "narrow" CBAM framework of the UK and the EU. Thus, the import of cars or washing machines containing this steel is currently not associated with such costs as those of domestic manufacturers of these products.
"We believe that CBAM should be expanded to reach steel consumers. Currently, the EU intends to consider the possibility of including more processed products, but they have not yet confirmed what they should be," he said.
He noted that the failure of CBAM could lead to deindustrialization and the disappearance of demand for steel in the UK and EU markets.
Carrie Bone United Kingdom
kallanish.com