The negative impact of decarbonization on the Ukrainian economy12.04.2021Decarbonization or carbon border adjustment (CBA) is the approach to production that reduces harmful emissions into the atmosphere. Decarbonization can be discriminatory against the converter steelmaking process, being the main method for Ukrainian production. CBA deprives Ukraine of competitive advantages in steel production, as converter production does not have a significant potential to reduce emissions into the atmosphere.
The EU's decarbonization policy started in 2000: European production had 20 years to get adapted to the new environmental requirements. Today, 85% of the EU's steel production capacity is electric steelmaking.
To neutralize the negative impact of decarbonization on the Ukrainian economy, it is necessary to achieve the individual approach within this program. Decarbonization will be able to reduce emissions only by employing the proper approach, that is, through the agreement with the countries participating in the program.
The EU's decarbonization policy started in 2000: European production had 20 years to get adapted to the new environmental requirements. Today, 85% of the EU's steel production capacity is electric steelmaking.
To neutralize the negative impact of decarbonization on the Ukrainian economy, it is necessary to achieve the individual approach within this program. Decarbonization will be able to reduce emissions only by employing the proper approach, that is, through the agreement with the countries participating in the program.