The future of metal business: decarbonization and new challenges for Europe and Bulgaria.

In recent years, the European metals industry has faced massive changes driven by environmental initiatives and the growing demand for metals for future technologies. Let's look at the challenges and opportunities shaping this market today.


Carbon Border Adjustment Mechanism (CBAM): A new reality for the metals industry.

With the introduction of the Carbon Border Adjustment Mechanism (CBAM), the European Union is imposing a tax on carbon-intensive imported goods, including steel, aluminum and iron. This measure is aimed at combating carbon footprint and leveling the playing field for local producers.


For Bulgaria, as an EU country, this creates a difficult situation:

- The rising cost of imported raw materials. Producers purchasing metal from countries with higher carbon footprints (such as China, USA, India, Saudi Arabia, Germany, Poland) will have to either look for alternative suppliers or pay additional fees.

- The need to modernize local production facilities. To remain competitive, Bulgarian companies must implement energy efficient technologies and switch to green energy sources.

- This stimulates the development of decarbonization technologies, but also requires serious investments and state support.

- Increasing demand for metals for the green economy.


 At the same time, demand for metals, which play a key role in the production of electric vehicles and renewable energy, is increasing in Europe:

- Copper and aluminum are actively used in the production of electric cables, batteries and solar panel elements.

- Lithium and rare earth elements are becoming the basis for batteries.


This is a chance for Bulgarian companies to carve a niche in the supply chain by supplying recycled or finished materials. However, due to global shortages and rising prices, it also creates a challenge in securing raw materials.


Challenges and opportunities for exporters.

CBAM is also a game changer for countries exporting metal to Europe. Producers from Turkey, Russia and Asia must adapt to new EU standards by reducing their carbon footprint or paying high taxes. This opens up opportunities for Bulgaria and other EU countries:

- Increased domestic investment. The European market is starting to focus more on local producers, which creates new projects in the steel industry.

- Supply chain reorientation. The demand for recycled metal within Europe stimulates the development of recycling.


Conclusion.

The metal business in Europe is going through a period of transformation, where success depends on adapting to environmental requirements and being able to capitalize on the growing demand for the metals of the future. For Bulgaria, this is a chance not only to overcome challenges but also to take a key position in the market, taking advantage of its position and potential for modernization.


Environmental sustainability, innovation and strategic investment are the three pillars on which the future of metallurgy rests.


*** Carbon footprint is the total amount of greenhouse gas emissions (primarily carbon dioxide, CO₂) that are generated by a person, company, product or event. It is measured in carbon dioxide equivalents and includes emissions from both direct activities (such as fuel combustion) and indirect activities (production of goods or transportation).

What is included in the carbon footprint?

1. Direct emissions: those that arise directly, such as from burning gasoline in cars or coal in power plants.

2. Indirect emissions: those associated with the production and delivery of materials, energy inputs, or waste disposal.


Why measure carbon footprint?

1.  To combat climate change: Reducing carbon footprint helps reduce global warming.

2.  To comply with regulations: For example, EU initiatives such as CBAM require companies to consider the carbon footprint of their products.

3. To increase competitiveness: Environmental friendliness is becoming an important factor for selecting partners and suppliers.


How to reduce carbon footprint?

- Utilize renewable energy sources.

- Improve energy efficiency of equipment

- Develop material recycling and reduce waste.