Carbon Markets & Products

Financial Implications of Carbon Pricing in the Asian Cement and Steel Industries

Published on November 1, 2023

Authored by Anastasiya Ostrovnaya, Antigoni Theocharidou, Bob Buhr, Jan Ahrens, Julian Smart

This report, published in partnership with the Singapore Green Finance Centre, explores the financial impact of decarbonisation on Asian cement and steel companies covered by selected Asian Emission Trading Schemes, serving to quantify the effect of carbon pricing systems on leading cement and steel producers, operating primarily in China and South Korea.

Researchers Dr Anastasiya Ostrovnaya, Antigoni Theocharidou, Julian Smart, Jan Ahrens and Dr Bob Buhr conclude that the only way to reduce carbon price liability would be for these companies to decarbonise. However, the paper also reveals that the funds needed for firms to fully decarbonise may exceed most companies’ valuations. This timely report is published as carbon pricing sits atop the COP28 agenda.

This report has been published by the Centre for Climate Finance & Investment at Imperial College Business School, alongside the Singapore Green Finance Centre.