Companies raise concerns over EU's carbon curbs

economictimes.indiatimes.com:

ArcelorMittal Nippon Steel India and Hindalco Industries have raised concerns about the European Union's Carbon Border Adjustment Mechanism (CBAM), which is set to kick in less than three months from now. While ArcelorMittal Nippon Steel India said exporters to the EU, especially developing nations, will be at a «gross disadvantage» against European competitors given the proposed method for calculating average embedded emissions, Hindalco said the regulations mandate sharing of voluminous operational data for concluding the sale of commodity items such as aluminium products. «With this framework, the exporters to EU (especially developing nations) will be at a gross disadvantage against European competitors as their efforts to produce low carb steel dedicated for exports will not fetch the full premium,» ArcelorMittal Nippon Steel India said. ET has seen copies of both the submissions which were made to the European Commission. Terming the draft «highly flawed both at the conceptual and practical level», Hindalco said the draft regulation is likely to have a «chilling effect on international trade». «Such a process raises multiple critical issues such as the confidentiality of producers and operators data, and the lead time that may be required for concluding transactions,» it said.

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Under the mechanism, producers are required to share information relating to the volume of goods produced, production routes, sources and consumption of raw materials, including electricity, which, Hindalco said, is