A group of steel importers is urging Labor to avoid turning a planned “carbon tariff” on imports into economically destructive protectionism, saying the country relies on more than 2 million metric tonnes a year of raw steel products that are not domestically available.

Climate Change Minister Chris Bowen announced this week that the government would look to develop a so-called carbon border adjustment mechanism, or CBAM, to shield domestic manufacturers subject to the government’s emissions rules from competition from importers in countries without climate policies.