EU carbon tariffs may impact Taiwan's steel exports
Posted on 06 October 2021
The Taiwanese Ministry of Economic Affairs estimated that the EU listed 248 items of carbon border adjustment mechanism (CBAM), of which around 212 products exported to Europe from Taiwan will be affected, with a value of NT$24.5 billion, mainly for steel products.
The EU was scheduled to implement carbon border tariffs on cement, steel, and energy-intensive industries from 2023, which will be fully effective in 2026.
The EU required importers to submit the CBAM certificate based on the total carbon content of products, and the carbon price is equivalent to the EU Emissions Trading System (EU ETS)'s auction price.
The Ministry of Economic Affairs assessed that the Taiwanese products exported to Europe will not be greatly affected by CBAM in the short term because the export volume to the EU account for a low proportion and the carbon content of products is better than the world average. However, it still needs to observe whether the US, Canada, Japan, and other countries will follow the EU's move in the future.