Tata Steel Europe plans to raise its carbon surcharge to €16/mt on new steel contracts from Sep 1 this year, in response to European Union (EU) raising its Emissions Trading Systems (ETS) quotas.
The global steelmaker was the first to implement this change in the region this April starting at €12/mt, according to media reports on Monday.
EU’s current ETS stands at €50-55/mt within the Union and it had proposed more changes in July this year in a bid to revise emission targets.
Steelmakers worldwide have been compelled to re-align their production targets based on net-zero goals by 2050 proposed by the EU. Leading producers, including Tata Steel and Arcelor Mittal, have put forward their recommendations in a report that may serve as a guidance structure for all manufacturers.