Asian cement and steel companies must decarbonise to survive carbon prices

High carbon emitting businesses in Asia will see consistent negative profits if they fail to decarbonise. This was the main conclusion of a new report published by the Centre for Climate Finance & Investment at Imperial College Business School, together with the Singapore Green Finance Centre. The report, Financial Implications of Carbon Pricing in the Asian Cement and Steel Industries , explores the financial impact of decarbonisation on Asian cement and steel companies covered by selected Asian Emission Trading Schemes. The report aims to quantify the effect of carbon pricing systems on leading cement and steel producers, operating mainly in China and South Korea. The report is published as carbon pricing is on the agenda at the COP28 climate summit. Carbon pricing, an instrument that captures the external costs of greenhouse gas emissions, is considered an essential climate mitigation policy tool. Asia is the fastest-growing carbon trading market, with many countries within the region among the world's major emitters of greenhouse gases.