In a statement, ArcelorMittal said the tax would level the playing field for European steelmakers, who pay a carbon cost under the EU Trading Emissions System, but are forced to compete with foreign stelemakers who can sell their steel with comparable, or often significantly higher, carbon emissions at a lower price.

“We know we need to invest more to decarbonize our industry and we truly believe we can be a world leader in low carbon steel. But in order to do so, we need to have a carbon border adjustment to create a landscape where others also contribute equally to a carbon-neutral world,” said Geert Van Poelvoorde, chief executive of ArcelorMittal Europe – Flat Products. 

“The time to do this is now, with the proceeds allowing further investment in large-scale green technologies that lead to a new era of low carbon emissions.”