en.Wedoany.com Reported - The European Union will implement the Carbon Border Adjustment Mechanism (CBAM) starting in 2026, requiring Kazakh exporters to submit carbon footprint reports to access the European market. This mechanism aims to account for carbon dioxide emissions during the production of imported goods, imposing environmental standards on both European and foreign producers.
More than half of Kazakhstan's aluminum products are exported to the EU. In addition to the aluminum industry, ferrous metallurgy products must also meet the new requirements. Kazakhstan's Ministry of Trade and Integration, the International Trade Centre (ITC), and QazTrade JSC jointly assessed the mechanism's impact on domestic enterprises and developed practical recommendations for metallurgical companies to adapt to the new operating environment.
Research data shows that if export volumes remain at 2025 levels, the implementation of CBAM will cost Kazakh exporters of unwrought aluminum, ferrochrome, steel bars, and rebar approximately €114 million annually. Nurlan Kurbatirov, Vice President of QazTrade, stated that efforts to help industrial exporters adapt to the EU's new requirements have already begun, with relevant enterprises receiving support to reduce financial costs, ensuring the competitiveness of Kazakh products in key markets.
At a seminar held on June 3, representatives from businesses, government, and international organizations learned about methods for calculating and verifying emissions, as well as opportunities arising from the transition to more environmentally friendly production. Jost Pauweling, an ITC expert and one of the report's authors, noted that Kazakhstan's exports of steel and aluminum products to the EU exceed €600 million. The EU's greenhouse gas emission requirements could add over €100 million in annual additional costs for Kazakh exporters, with 90% of these extra costs coming from steel bars and rebar. According to estimates, costs under CBAM may exceed the value of the products themselves.
Experts proposed several measures to alleviate the financial burden on enterprises, including monitoring and reporting actual emissions (rather than default values), certifying verification bodies in Kazakhstan, reducing greenhouse gas emissions during production, and developing a domestic carbon pricing mechanism.
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