SMU Steel Summit: Carbon Border Tax in Steel’s Future?

Phil Bell, president of the Steel Manufacturers Association, puts the chances of the U.S. steel industry facing a carbon tax at roughly 50-50, “though it is trending that way,” he said in remarks during Steel Market Update’s Steel Summit last month in Atlanta. “SMA is opposed to any taxes that aren’t necessary and is opposed specifically to a carbon tax unless it’s accompanied by a border adjustment mechanism,” he added.

Governments around the world are considering policy measures to reduce the harmful carbon dioxide emissions from steel and other industries that are contributing to global warming. Interest is growing in a system that would place a tax on carbon emissions; thus countries with lower environmental standards and higher emissions would have to pay a penalty when exporting to other countries.