Tata Steel Europe to implement carbon surcharge: sources
Posted on 13 April 2021
Tata Steel has told customers of its intention to add a special carbon surcharge to all new sales of steel products in Europe and the UK to compensate for the cost of CO2 allowances, Kallanish learns from sources close to the matter.
The surcharge will amount to €12/tonne and will appear in a separate line in all new invoices.
While this move represents a first concrete attempt by a steelmaker to introduce a carbon surcharge for steel sales, it is in line with the indications given by mills extensively over the last 12 months.
EU ETS (Emissions Trading Scheme) prices have doubled in the last 12 months, to a level of above €40/t in April. In the 2012-2017 period prices remained below €10/t, only to start their ascent from the beginning of 2018.
Commenting on the new Tata Steel Europe surcharge, a source close to the company notes that “the company is working towards reducing CO2 emissions, but this is more for the future”. He adds that the new surcharge is needed to cover CO2 costs and mentions other European steelmakers are looking at the move with interest.Source : Kallanish