The government has approved the Italian Parliament's mandatory measure to cooperate with the European Commission (EC) to revise certain elements of the Carbon Border Adjustment Mechanism (CBAM) with the EU.
The sources underlined that among the issues discussed in the Italian Chamber of Deputies was including raw materials such as pig iron and semi-finished products in the CBAM mechanism, while the most important issue discussed was the difficulty of collecting data to be provided to the European Commission. At the same time, the sources noted, the information that needs to be collected from suppliers has become extremely difficult, which has led to problems with data submission to the system.
Regarding another issue, the inclusion of certain raw materials in CBAM, it is claimed that this will make it easier to import finished products, but will also increase the cost of raw materials used by EU producers. SteelRadar sources warn that major producers will relocate their plants to different regions due to the convenience of geographical location, leading to the localization of the remaining manufacturing sector.
CBAM fees are estimated to increase the cost of steel by around 56% in India and 49% in China in the coming years. Sources underline that the EU does not yet have a specific action plan.
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