“Carbon tariffs are critical for decarbonization,” Dempsey said Tuesday during a discussion at the 2024 Global Steel Dynamics Forum. Co-organized by the Association for Iron & Steel Technology and World Steel Dynamics, the annual conference is taking place this week in New York City. 

Generally referred to as a carbon intensity tax, Dempsey told the audience that the idea is to collect an import fee on imported goods with greater emissions intensity than domestic-made goods.

He noted that the average emissions intensity for U.S.-made flat-rolled steel is 1.24 tons of CO₂/ton, compared to the global average of 2.33 tons of CO₂/ton. For long products, Dempsey showed the U.S. average is 0.46 tons of CO₂/ton, versus a global average of 1.88 tons of CO₂/ton.

Dempsey said that such a fee should be “adjustable, on a product-by-product basis.” He added that such an approach would require precise data on imported material.
 

• This article is courtesy of World Steel Dynamics' USA Steel Dynamics information service.