Steel and aluminium manufacturers should brace for a new levy on their exports as a result of the European Union's (EU) introduction of the Carbon Border Adjustment Mechanism (CBAM) on Oct 1 this year, says the Office of Industrial Economics (OIE).
The transitional phase of CBAM requires importers of iron and steel, aluminium, cement, fertilisers, electricity and hydrogen to report greenhouse gas emissions embedded in their imports without being subject to financial payments or adjustments, according to the EU.
