Under the CBAM reporting rules, there are some special parameters for the iron and steel sector. In this blog, we understand specific reporting rules and requirements for the iron and steel sector.
CBAM for Iron and Steel: The European Union’s Carbon Border Adjustment Mechanism is already affecting the iron and steel industry across the globe. The Indian iron and steel sector, which is the second largest producer in the world, is under tremendous pressure due to CBAM. There are different reasons for it, including the increasing volume of trade with the EU, emissions intensity in the Indian steel sector, lack of digital infrastructure and inadequate data collection systems.
For example, a steel manufacturer which has been in business with the EU for years can not suddenly submit the embedded emissions report as it never invested in data collection and emissions accounting methods.
CBAM which has been introduced to prevent carbon leakage and facilitate pay parity for all traders inside and outside Europe, actually causing some greater economic ripples than imagined earlier.
In this blog, we will understand CBAM reporting rules for the iron and steel industry.