EU green steel deal: maneuvers on the decarbonization track

Abstract

The subject of the analysis is the problems of ferrous metallurgy in the EU countries in the situation of a sharp increase in costs due to the energy crisis of 2021 and 2022 and with the EU initiative to introduce the so–called Carbon Border Adjustment Mechanism (CBAM), developed within the framework of the "European Green Deal" adopted in 2019. The author analyzes the prospects for the abolition of free emission permits for the ferrous metallurgy industry in the EU within the framework of the CBAM mechanism and the transition of companies to carbon payments in the ETS system. The influence of these factors on the prospects for the implementation of decarbonization programs announced by companies in the industry, including the development and commercialization of low-carbon technologies, is analyzed. An assessment of the positions and interests of the European ferrous metallurgy industry in relation to CBAM and the actions of the industry lobby in the course of promoting this initiative is given. The latest initiative of the "Green Steel Deal", proposed by the industry to the EU leadership on the eve of the vote in the European Parliament on the details of the CBAM mechanism, is analyzed. It is concluded that the combination of increased costs due to the increase in fuel and energy prices and due to the increase in the cost of paying for emission permits within the framework of the introduction of CBAM makes it possible for European ferrous metallurgy products to lose competitiveness in world markets.The article was prepared based on the results of research carried out at the expense of budgetary funds under the state assignment to the Financial University under the Government of the Russian Federation.