Conceptual Principles of the Carbon Intensity Regulation Mechanism in Ferrous Metallurgy

Abstract

Purpose. To substantiate the conceptual foundations and structural elements of the organizational and economic mechanism for carbon intensity regulation in the Ukrainian iron and steel industry to stimulate resource and technological modernization and ensure competitiveness in a low-carbon transition.

Method. Systematic and structural analysis was used to form the mechanism's architecture; logical modeling to define functional and process relationships between management entities; comparative analysis to adapt international green finance instruments to national specifics; and graphic visualization for the "green" credit algorithm and project taxonomy.

Findings. A multilevel structure of the organizational and economic mechanism integrating regulatory, economic, and institutional tools was developed; the necessity of using author's indicative indicators (IPm, IPo) as basic criteria for selective state support was proven; the feasibility of transforming BAT reference documents by including a "climate appendix" was justified; an algorithm for providing preferences through green credits and bonds based on verified reduction of specific emissions was formed.

Theoretical implications. The work deepens scientific understanding of state regulation of industrial development under environmental constraints; systematizes carbon intensity management functions (diagnostic, predictive, normative) and clarifies the role of indicative planning in the national economy's decarbonization.

Practical implications. The results allow for improving investment project selection for state guarantees, providing a methodological basis for a national "green" taxonomy, and forming scientifically based approaches to accelerated depreciation for energy-efficient equipment and special investment contracts.

Originality. For the first time, a concept of regulatory and financial integration was proposed, where BAT technological standards act not only as environmental constraints but as financial triggers to reduce the cost of capital, providing a practical roadmap for the decarbonization of Ukraine's metallurgical sector.

Research limitations. Limitations relate to energy market volatility affecting the relevance of indicative indicators and the need for constant harmonization of the national BAT base with dynamic changes in EU legislation (CBAM and EU Taxonomy).

Paper type. Research.