Orion adding ‘CO2 surcharge’ for all carbon blacks manufactured in Europe

Houston, Texas – Orion Engineered Carbons is implementing a carbon dioxide (CO2) surcharge on all carbon black products manufactured in Europe, the company announced 4 Oct.

The surcharge, the amount of which was not disclosed, will come into effect 1 Jan 2022 and will be to the extent contracts allow.

Orion said the move is in response to the fourth trading phase of the EU Emission Trading System (ETS), which it said had resulted in “additional costs based on direct CO2 emissions for the carbon black industry.”

ETS aims to support the EU climate neutrality target by 2050 and the union's intermediate target of at least 55% net reduction in greenhouse gas emissions by 2030 compared to 1990. 

Orion said the surcharge will enable it to “continue being a reliable, long-term global supplier of high-quality products and services while manufacturing its carbon black products safely and sustainably.”