Tata Metal exports coated steel to U.S., Europe with CBAM certification

Indonesian coated steel producer PT Tata Metal Lestari has begun exporting coated steel products to the United States and Europe after securing certification under the European Union’s Carbon Border Adjustment Mechanism (CBAM), the company said on Friday.

The shipment, dispatched from the company’s plant in Cikarang, West Java, included exports to the United States and Poland and marked what the company described as the first Indonesian coated steel product to obtain a CBAM pre-validation report.

The certification comes as global steel exporters face tightening carbon-related trade rules and increasing scrutiny over the origin of raw materials.

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Indonesia’s steel industry had previously been assigned a default carbon emission value of 8.2 tonnes of CO2 per tonne of product under the EU CBAM framework. However, Tata Metal said an initial verification process showed emissions of about 2.2 tonnes of CO2 per tonne of product, comparable to levels recorded by steel producers in Japan and other developed countries.

“For the first time, Indonesian coated steel has obtained a Pre-Validation Report under CBAM,” Tata Metal Lestari Vice President of Operations Stephanus Koeswandi said during the export ceremony on Friday.

Editing by Reiner Simanjuntak