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CBAM locks in cost disadvantage for EU steel

CBAM as announced will lock in for an extended period the current cost disadvantages for the EU steel industry due to EU ETS. As such, carbon leakage will continue and EU steel profitability will be impacted at a time when investment in the low-carbon transition is called for.

Insight

COP26 – crunchtime for commodity markets?

COP26, the first Conference of the Parties since the outbreak of the Covid pandemic, is widely seen as an important follow-up to the 2015 Paris Agreement. In 2015 countries committed to carbon reduction targets in the form of nationally-defined contributions. Expectations are high that governments will agree to even more ambitious carbon reduction targets at COP26. But even in the absence of any political agreements – previous COPs have not always lived up to expectations - capital markets initiatives in combination with corporate commitments will put increasing pressure on the commodities industries to adjust to the transition to a low carbon economy.

Insight

CBAM: a blunt tool to “level the playing field”

In the absence of global carbon pricing, the Carbon Border Adjustment Mechanism (CBAM) is a key policy to help the EU manage domestic decarbonisation goals within the globally traded commodities market. Yet the CBAM is a blunt tool. CRU finds that the CBAM does not equalise EU and non-EU carbon costs nor effectively discriminate between high and low carbon materials.

Insight

The life of your mine may be shorter than you think

In 50 years from now, the global mining industry is likely to be smaller than it is today. Within the shrinking pool of mined output there will be winners and losers: the mining of mineral fuels will decline; the mining of green minerals – copper, lithium and nickel, required for a low carbon world economy – will rise

Insight

Proposed revisions to the EU’s ETS: impact on maritime transport costs

The inclusion of maritime shipping in ETS will have marginal cost impact on freight costs or commodity prices. To encourage a faster shift to cleaner fleets, significantly higher carbon prices or other interventions such as strict emissions standards will be needed.

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Featured Article

CBAM locks in cost disadvantage for EU steel

COP26 – crunchtime for commodity markets?

CBAM: a blunt tool to “level the playing field”

The life of your mine may be shorter than you think

Proposed revisions to the EU’s ETS: impact on maritime transport costs

All Sustainability Knowledge and Insights

CBAM locks in cost disadvantage for EU steel

COP26 – crunchtime for commodity markets?

CBAM: a blunt tool to “level the playing field”

The life of your mine may be shorter than you think

Proposed revisions to the EU’s ETS: impact on maritime transport costs

EU “Fit for 55” package: limited carbon cost shock for commodity markets

Challenges ahead for the steel industry to achieve carbon neutrality

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