Company: MT
Filing Date: 2025-03-10
Form Type: 20-F
Source: 0001243429-25-000017
Chunk: 105

Company: ArcelorMittal
Filing Date: 2025-03-10
Form: 20-F
Chunk 105
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 of 2025. During the pilot stage, ArcelorMittal México consistently adhered to the environmental authority's ("SEMARNAT") emission calculation and reporting criteria for the ETS. ArcelorMittal's CO 2 emissions reports have consistently showed zero deficits. Despite the initial plan for the operational stage to start in 2023, In January 2024, SEMARNAT presented a proposal of the operating rules of the ETS with new growth factors and reduction factors for the mechanism to assign free emission allowances for all participants sectors. The authority has not officially defined operational stage rules, but an unofficial final proposal is expected soon. In addition, since 2023, there has been a very marked trend by state governments in Mexico to implement green taxes on CO 2 emissions, which caused an additional tax impact on different sectors that participate in other federal government schemes (e.g., ETS). Working groups have been formed within several trade associations and business chambers to promote initiatives that minimize the economic impacts on the industrial sector. Taxes range from $2.2 - $44.5 USD per ton of CO 2 emitted. South Africa In South Africa, the proposed Phase 2 of the Carbon Tax discussion paper has been published by the National Treasury on November 13, 2024. The proposal as is poses a significant increase in carbon tax liability to ArcelorMittal South Africa with increase in annual carbon tax rates combined with a drastic phase down of tax-free allowances and stricter eligibility criteria to benefit from other tax-free allowances, all measures projecting a significant impact in financial terms to unaffordable levels. The proposal presented by National Treasury also includes a higher carbon tax of R640/tCO 2 e for emissions exceeding the allocated carbon budget to be applied to taxpayers as a penalty. Also in South Africa, on Apri l 26, 2024 the DFFE published the Draft Sectoral Emission Targets (SETs) Report for public comments. The report outlines institutional arrangements that will guide the SETs allocation to support the country’s both national and international commitments to mitigate climate change. Ukraine In July 2024, Ukraine adopted the Law on "Integrated Prevention and Control of Industrial Pollution" (IPPC Law), which will enter into force on August 8, 2025. The document aims to prevent, reduce and control pollution arising from economic activities and applies an integrated approach to pollution regulation and implementation of best available technologies and management methods. According to the IPPC Law, all new entities are required to obtain an integrated permit after the