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Digesting the EC’s border tax proposal

The European Union’s proposed carbon border tax on imports of energy-intensive goods could push up prices of steel, aluminum and raw materials, which could add costs to the supply chain for solar PV installations. In the longer run, however, the border tax could also offer solar PV manufacturers new opportunities to source materials with a lower carbon footprint.

By

Andreas Walstad

09 Aug 2021

The A-Motion tracker system uses ArcelorMittal steel. The European Union’s proposed Carbon Border Adjustment Mechanism would impose a tax on imports of steel and other carbon-intensive products from outside the trade bloc. | Image: ArcelorMittal

Solar installations, particularly grid-scale projects, consume large volumes of steel and aluminum in the production process. According to Luxembourg-based ArcelorMittal, one of the largest steel manufacturers in the world, each new megawatt of solar requires between 35 and 45 tons of steel, and each new installed megawatt of wind power requires 120 to 180 tons. …

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