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Green Steel in the Frontline of incoming CBAM

Climate change is a global issue that needs global solutions, for many years, steel has been a significant contributor to carbon emissions and it is also one of the first targets of the EU’s Carbon Boundary Adjustment Mechanism (CBAM). It aims to put a price on carbon emissions associated with certain products, including steel, imported into the EU. For every ton of steel produced, nearly two tons of carbon dioxide are emitted. The steel industry's emissions are a significant part of the world's total carbon emissions, contributing to about 7-8% of global emissions. Let's look at other country's development on the CBAM.

In Europe

Swedish steelmakers are now actively developing the use of hydrogen as a substitute for fossil fuels as is considered a clean energy source when produced using renewable energy or through processes. The Swedish provider has also succeeded in producing the world’s first green steel and it is a groundbreaking achievement all over the world.

In the U.S

Boston Metal in the United States with its patented Molten Oxide Electrolysis (MOE) process for producing green steel with the goal of producing 1 billion tons is a significant development in the steel industry. (MOE is more efficient and has Zero carbon dioxide.)

In Asia

The collaboration between Taiwan CSC and a local enterprise in the fastener industry to develop and produce carbon-neutral steel, succeeded in developing and producing 150 tons of carbon-neutral steel, which is now actively going through various international certifications.

In India, Tata Steel's commitment to reducing carbon emissions through green hydrogen-based steelmaking. The company aims to reduce carbon emissions by 30% by 2030, 75% by 2035, and achieve net zero by 2050.

Japan's efforts to promote carbon reduction, the Party has been discussing with automotive and steel industry groups to promote green steel manufacturing processes. The estimated JPY 10 trillion investment in the steel industry represents a significant commitment to transitioning to more environmentally friendly steel production processes.

The steel industry is just one example of how different sectors need to adapt and reduce their carbon emissions to combat climate change effectively, other industries or enterprises shall keep an eye on it.


Dean Tseng (2023) Green Steel in the Frontline of incoming CBAM. Fastener-World Magazine No.202, 252~254

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