Kazakhstan's steel and aluminium industries are bracing for significant financial hits due to the EU's Carbon Border Adjustment Mechanism (CBAM). Without accurate emissions reporting, some steel exports could face costs exceeding 100% of their value based on EU default carbon prices. To mitigate these costs, experts suggest Kazakhstan raise its domestic carbon price and improve monitoring systems. This would allow the country to retain carbon revenues locally rather than paying them as tariffs to the EU, while reducing the risk of exporters diverting supplies to less regulated markets.
