The carbon border adjustment mechanism: What does it mean for steel recycling?

Rossetto, Daniel

doi:10.1016/j.horiz.2023.100048

Cited by 15 publications

(5 citation statements)

References 23 publications

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“…Conversely, some scholars argue that the CBAM is an effective means to mitigate carbon leakage and promote global decarbonization [15], stimulating emission reduction efforts in relevant industries [16]. For the steel industry, the advancement of the CBAM is expected to stimulate enthusiasm for recycling resources such as scrap steel, promoting the recycling of scrap steel resources and reducing carbon dioxide emissions [17], while protecting the steel industry from the risk of carbon leakage [18]. Therefore, the current research lacks perspectives from enterprises and governments of countries subject to the CBAM, examining its impacts on stakeholders and how to mitigate its effects.…”

Section: Introductionmentioning

confidence: 99%

Impacts of Carbon Border Adjustment Mechanism on the Development of Chinese Steel Enterprises and Government Management Decisions: A Tripartite Evolutionary Game Analysis

Tian,

Zheng,

Liu

et al. 2024

Sustainability

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Upon the implementation of the European Union Carbon Border Adjustment Mechanism (CBAM), substantial challenges are anticipated to impact the international trade of Chinese steel products. To safeguard the competitiveness of Chinese steel products on the global stage, this paper establishes a tripartite evolutionary game model, involving large steel enterprises, small- and medium-sized steel enterprises, and the government. The model integrates collaborative emission reduction and free-riding benefits among enterprises, along with the government’s dynamic subsidies and penalties. First, we calculate the replicator dynamic equations and conduct stability analysis to obtain the evolutionary trends and system equilibrium points in different phases of the CBAM. Then, we validate the evolutionary theoretical analysis of the model through example simulation analysis. Finally, we explore the impact of different parameters on the agents through a sensitivity analysis of parameters. The findings indicate that (1) large enterprises demonstrate greater sensitivity to CBAM, making their production structures more susceptible to changes in CBAM policies; (2) small- and medium-sized enterprises are more prone to free-riding behavior influence; (3) government intervention should be kept within appropriate boundaries, as excessive intervention may lead to strategic oscillation, with passive management being chosen by the government during the strengthening phase of CBAM; (4) elevating the price in the Chinese carbon market would slow down the structural changes in the production of Chinese steel enterprises, serving as an effective measure to counteract the impacts of CBAM. This paper provides theoretical support for how steel enterprises and the government can respond to CBAM, aiding stakeholders in selecting optimal strategies during different implementation stages and mitigating the impacts of the CBAM to the maximum extent possible.

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Section: Introductionmentioning

confidence: 99%

Impacts of Carbon Border Adjustment Mechanism on the Development of Chinese Steel Enterprises and Government Management Decisions: A Tripartite Evolutionary Game Analysis

Tian,

Zheng,

Liu

et al. 2024

Sustainability

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“…Одной из самых обсуждаемых инициатив ЕС стало предложение по введению трансграничного углеродного налога / пограничного корректирующего углеродного механизма (ПКУМ) (англ. -CBAM) / трансграничного углеродного регулирования (ТУР) [1][2][3][4][5] (далее -ПКУМ).…”

Section: Introductionunclassified

“…Обзор литературы подтверждает, что ПКУМ эффективен в снижении утечки углерода [1][2][3][4]. A. Köppl и M. Schratzenstaller считают, что установление углеродного налога может эффективно сокращать выбросы углерода, или, по крайней мере, сдерживать их рост, не влияя на экономический рост и занятость, а также рекомендуют устанавливать достаточно высокие ставки углеродного налога, чтобы стимулировать сокращение выбросов и инновации [1, p. 28-29].…”

Section: Introductionunclassified

Prospects for Export of Goods from Turkey to the European Union Countries in the Context of Carbon Taxation

Kashbrasiev

2024

jour

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The subject of the study is the carbon border adjustment mechanism (CBAM), one of the European climate regulation tools aimed at curbing the “carbon leakage” that occurs when importing goods from countries with less stringent climate regulation to countries with more stringent regulation. For this reason, the carbon tax affects the interests of exporters of carbon-intensive goods to the EU, especially Russia, Turkey, China, which will suffer the greatest damage. The purpose of the paper is to assess the dynamics of the export of Turkish goods to the EU countries and to determine Turkey’s position on the introduction of a carbon tax. One of the main tasks of the work is to determine the extent to which Turkey supports Russia in the EU’s opposition to the introduction of this tax. The research methodology is based on the use of statistical analysis methods (sampling, comparison, grouping, etc.) and analysis of identified trends. An analysis of the dynamics and structure of trade between the EU and Turkey led to the following results: 1) Turkey is one of the leading countries exporting carbon-intensive products to the EU; 2) The existence of a weak dependence of the EU on carbon-intensive Turkish goods due to the differentiation of its imports and, conversely, a strong dependence of the Turkish economy on the EU due to the significant orientation of Turkish exports to EU markets. It is concluded that Turkey is in a difficult situation in connection with the CBAM. On the one hand, there is a threat of a decrease in the competitiveness of products of the cement, mechanical, and metallurgical industries; on the other hand, national companies are successfully integrated into European production chains, and the strategy of adaptation to the European Green Deal may be preferable both for them and the national economy as a whole. Therefore, there is a possibility that Turkey will take a “pro-European” position. If a “pro-European” position prevails, this will create additional risks for the Russian Federation in the fight against EU carbon taxation.

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“…The EU CBAM places a fair price on carbon emitted during the production of carbon-intensive goods that enter the EU as well as to prevent carbon leakage, which is consistent with the EU Emissions Trading Scheme. The aim is to impose the same carbon price level on imported products as on EU-produced goods [2]. Before the CBAM entered into force on January 1, 2026, quantifying the environmental benefits of recycling to reduce the embodied emissions within products and allocating these benefits between industries in an interconnected manner were challenging.…”

Section: Graphical Abstract 1 Introductionmentioning

confidence: 99%

LCA-based environmental benefit allocation between steel and cement industries in steel byproduct recycling

Shin,

Kim,

Hwang

et al. 2024

Environmental Engineering Research

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Among the steel byproducts, more than 80% of blast furnace slag is recycled in the cement industry. However, the criteria for allocating environmental benefits between the steel and cement industries need to be more transparent. This study aims to allocate the environmental benefits between the steel and cement industries when granulated blast furnace slag (GBFS) is recycled to replace Portland cement in the production of slag cement (SC). Specifically, this research proposes how the recycling of GBFS, a byproduct of the steel production process, can quantify environmental burdens and benefits from both attributional life cycle assessment (ALCA) and consequential life cycle assessment (CLCA) perspectives. It also suggests methods for allocating these environmental benefits between the steel and cement industries. Following the final agreement on the EU Carbon Border Adjustment Mechanism (CBAM), this study emphasizes the growing importance of interconnected allocation of environmental benefits through recycling. Various allocation methods using ALCA and CLCA approaches have been assessed, significantly impacting the analysis results. Furthermore, these findings of the study are expected to provide guidance for potential policy decisions and internal decision-making processes, highlighting the environmental benefits that GBFS recycling offers to both steel and cement industries.

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The carbon border adjustment mechanism: What does it mean for steel recycling?

Cited by 15 publications

References 23 publications

Impacts of Carbon Border Adjustment Mechanism on the Development of Chinese Steel Enterprises and Government Management Decisions: A Tripartite Evolutionary Game Analysis

Impacts of Carbon Border Adjustment Mechanism on the Development of Chinese Steel Enterprises and Government Management Decisions: A Tripartite Evolutionary Game Analysis

Prospects for Export of Goods from Turkey to the European Union Countries in the Context of Carbon Taxation

LCA-based environmental benefit allocation between steel and cement industries in steel byproduct recycling

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