EU Green Deal
The EU Green Deal is currently under re-visitation and implementation. As a result this will create new obstacles for GCC firms as well as opportunities for those who will follow the EU rules and guidelines.
The goal is to reduce carbon emissions and to accelerate the plan to produce energy using alternative solutions such as renewables. The climate neutral mission is set by 2050.
The Green Deal will cover several industrial sectors and will have a total of 48 initiatives.
This will affect all the value chain starting from the design and production of products in accordance to their use, reuse, repair and recycling process.
The new set of rules will offer incentives for those companies who are producing secondary and recycled materials and disincentives for those who produce primary materials.
In the coming years it is expected a reductions in import of fossils fuels and carbon- intensive goods by adding new excises or import taxes in an attempt to create new clean energy systems and to increase sustainable awareness and practices in all the value chain. This will gradually affect GCC firms in the field of steel, ferroalloys, cement, aluminium and carbon-related products.
This move will be the first ever carbon border adjustment mechanism CBAM, which will be effective from 2023 onwards.
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