9 June 2023 – The world is increasingly concerned about Europe’s border adjustment tax CBAM and green steel. And the US government is also considering a CO2 tax but faces the challenge of finding a workable solution – which the EU has not yet been able to offer either. And the EU in particular has shown that it has simply forgotten to inspire its global trading partners and take them along on its supposedly green journey. And China is taking measures against illegal mining.
The growing Green Steel concerns
After the European Union has already tried to establish a functioning carbon border tax (CBAM), thus creating more bans, bureaucracy and centralised power in Brussels, the US government is also considering CO2 countervailing duties. This is reported in the Wall Street Journal and also shows the problems that the Biden administration and the officials in Brussels are facing: It’s easier said than done.
Not enough electrical steel capacity for green turnaround?
In addition, several US trade associations are now calling for new import restrictions on electrical steel and active support for domestic production of the vital raw material for electric mobility and renewable energy generation, among other things.
Otherwise, according to the associations, there could be an acute shortage of electrical steel in the United States. At the same time, the debate is raging about whether there is enough renewable electricity for e.g. hydrogen production in the US.
EU forgets its most important trading partners
With CBAM, the Europeans have already shown what it means to present close and important trading partners all over the world with a fait accompli and to push them over the edge with unfinished concepts. Forgetting that the world does not need Europe as much as the EU, which is dependent on imports, especially of raw materials. More and more important European trading partners, e.g. China or Indonesia, are showing frustration, but the African continent also sees massive problems coming its way.
Carrot for Europe, punishment for the world?
It is again the double standard of European legislators who want to bring the world into line with sanctions, bans and market protection measures, but in return can only persuade their own steel producers, for example, to make green investments with the help of subsidies. Sanctions are for war criminals. It would be better to offer global solutions for free nations.
Bans do not advance the green transformation
It makes more sense to support good ideas and focus on improving existing technologies rather than reinventing the wheel by force. Don’t reprimand but inspire the world. With practicable concepts.
China is taking measures on illegal mining
China is taking measures to address internal issues and tighten regulations related to raw materials. An illegal iron ore backfill project in Malanyu Town, Hebei province, came to light recently. The Riqiang Iron Ore Dressing Plant expanded sand pits, encroached on cultivated land, and conducted ore processing without proper permits.
Crackdowns on illegal mining in different regions
Consequently, production has been suspended, and other mines in the area are awaiting approval to resume operations. While crackdowns on illegal mining are underway in different regions, the resumption of legal mining in Shanxi and Hebei may help mitigate the impact. Could it be just a short matter of time, until China will expand the activity against illegal mining to other raw materials?
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