Kazakhstan's aluminium, iron and steel exporters could face over €100 million in annual costs under the EU's Carbon Border Adjustment Mechanism (CBAM) if they rely on default emission values, according to a report presented on 9 June 2026 in Astana. The assessment, conducted by the International Trade Centre (ITC) in partnership with Kazakh trade agency QazTrade under the EU-funded Ready4Trade Central Asia project, warns that 90% of the impact would fall on steel bars and rods, where estimated CBAM costs could exceed the product's value by 123%.
Supporting the Compliance and Green Transition of Kazakhstan Exporters in Aluminium, Iron and Steel Sectors', provides a phased compliance roadmap and step-by-step guidance on emissions reporting, engagement with EU buyers, and accreditation of local verifiers. It notes that straightforward measures such as monitoring actual emissions, replacing default values, and strengthening domestic carbon pricing could significantly reduce the financial burden.
CBAM entered into force in January 2026 after a transitional phase from 2023 to 2025, imposing new reporting and compliance requirements on six carbon-intensive sectors. The EU is Kazakhstan's largest trading partner, accounting for approximately 31% of its foreign trade and 44% of its exports by end-2025. More than half of Kazakhstan's aluminium exports go to the EU, according to Zhanel Kushukova, Deputy Minister of Trade and Integration of Kazakhstan.
Johannes Baur, Head of Cooperation at the EU Delegation to Kazakhstan, said that strengthening transparency and sustainability reporting can help Kazakh exporters remain competitive. Nurlan Kulbatyr, Deputy Director General of QazTrade, noted that systematic work has begun to help industrial exporters adapt to EU requirements and minimise financial burden.
Joost Pauwelyn, ITC International Expert and lead author, highlighted that Kazakhstan currently exports over €600 million worth of steel and aluminium to the EU. He stressed that using default CBAM values could lead to disproportionate costs, but that producers can cut costs through monitoring actual emissions, accrediting local verifiers, and reducing emissions at production sites.
The report is part of the EU's broader climate and trade agenda under the European Green Deal, aiming to ensure a fair carbon price for imports while encouraging cleaner industrial production globally. The findings underscore the importance of early preparation and gradual alignment with international verification and reporting practices for Kazakhstan's export-oriented sectors.
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