What does all this mean in practice?

By 2034, assuming a conservative future EU ETS carbon price of 200 EUR/tCO2e, the cost per ton of crude steel will rise from an average of 700€ to 1160€. Cement will see an even steeper increase, with the cost per ton of cement clinker, currently around 50€, escalating to approximately 250€.

 

According to internal pricing models, by 2029, green industrial products are expected to be more cost-effective than carbon-intensive alternatives. Over time, a slow approach to decarbonization will likely result in costs doubling compared to a more agile transition.

 

It is crucial for companies, particularly in low-margin sectors, to meticulously track their suppliers’ carbon footprints using real data. Incorporating a financial analysis of this data is essential for expenditure tracking. Furthermore, effective supply chain management, including the flexibility for supplier changes, will be key in maintaining a competitive edge.