Kazakhstan Prepares for EU Carbon Border Tax Impact on Exports
Kazakhstan's aluminum and steel sectors face significant challenges due to the EU's Carbon Border Adjustment Mechanism (CBAM). The International Trade Centre's report outlines compliance strategies and potential costs, highlighting the need for effective emissions monitoring.
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Kazakhstan's aluminum, iron, and steel sectors are poised to experience major impacts from the EU's Carbon Border Adjustment Mechanism (CBAM). The ITC report indicates that the EU accounted for 54% of Kazakhstan's aluminum exports, projecting CBAM costs to reach about 5.6 million euros (US$6.5 million) for aluminum alone.
Conversely, costs for iron and steel exports could surpass 108 million euros (US$125 million), potentially exceeding the export value of some products. Failure to accurately report emissions could lead to penalties based on higher EU default values, with costs rising significantly by 2028. The report emphasizes the need for Kazakhstan to enhance its domestic carbon pricing framework and improve emissions reporting to mitigate CBAM-related expenses and maintain competitiveness.
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