Everyone knows that iron and steel is one of six types of goods (along with aluminum, iron, cement, fertilizer, aluminum, electricity and hydrogen) that must declare greenhouse gas emissions according to the Carbon Border Adjustment Mechanism. carbon (CBAM). But specifically which products of the steel industry or all products must comply with the CBAM mechanism?
Iron and steel export volume doubled compared to the same period last year
In 2022, the EU's iron and steel import turnover from Vietnam will reach 2,1 billion USD. According to statistics from the General Department of Customs, the amount of iron and steel exported in August 8 reached 2023 thousand tons. Overall, in the first 988 months of 8, the country exported 2023 million tons of iron and steel of all kinds with a value of 7,38 billion USD, an increase of 5,69% in volume over the same period last year. The amount of iron and steel of all kinds in Vietnam in the first 24,4 months of 8 increased mainly due to the export of iron and steel of all kinds to the EU market (2023 countries) more than double the same period last year and reached 27 million tons. Meanwhile, the amount of iron and steel sent to the ASEAN market was 2 million tons, down 2,31% over the same period last year.
With the EU amending regulations on applying safeguard measures on some imported steel products - effective from July 01, 7, Vietnam's steel exports to the EU are expected to continue. have favorable conditions in the near future. According to the new regulations, any WTO member that is a developing country is exempt from the application if the proportion of that country's exports to the EU remains below 2023% of total imports for each type of product. Along with many other countries such as China, India, Malaysia, Brazil... Vietnam also benefits from this quota expansion regulation.
Master CBAM to increase your competitive advantage
The export market is increasingly open, but to effectively grasp that opportunity and increase competitiveness in the market, mastering the regulations that specifically apply to which products is a common problem for many businesses in the industry. iron and Steel. Because the average emission level of Vietnam's iron and steel is high, about 2,51 tons of CO2 per ton of crude steel (compared to the world average of 1,85 tons of CO2 per ton of crude steel). Indirect emissions from electricity consumption alone are calculated, with the average electricity consumption for steel production being about 400-600 kWh/ton of steel, emissions from electricity consumption if taken from the national grid. for 1.000 tons of steel amounts to about 288-433 tons of CO2.
Thus, if iron and steel enterprises do not know whether their products are subject to CBAM regulation or not, it will be very disadvantageous in preparing and meeting those requirements of EU customers. Meanwhile, the iron and steel industry currently has the largest number of products that must be adjusted according to the CBAM mechanism among 6 types of goods with nearly 45 industry codes.
Typical products include iron and non-alloy steel in ingots or other raw forms (7206); Granules and powders, of pig iron, pig iron, iron or steel (7205); Other alloy steel bars and rods (7227, 7228); Flat-rolled stainless steel products (7219, 7220); Types of tubes, pipes and hollow bars... If we do not master and prepare carefully for this mechanism, we will narrow our own orders while the market is blooming and competition is fierce. .
GREEN IN's team of CBAM declaration experts will help businesses determine whether their iron and steel products are on the list of goods subject to the CBAM mechanism or not. Since then, GREEN IN helps businesses not only declare CBAM in accordance with international regulations but also advise on "greening" solutions to help the iron and steel industry reduce emissions, increase competitiveness and have opportunities to increase revenue. from carbon credits. Contact GREEN IN at hotline: 097 978 6242 or via email ppgad@pucrs.br for the fastest and most accurate advice.