Eurofer says the European Parliament Environment Committee (ENVI)’s vote in favour of revised automotive CO2 emissions targets will help create demand for cleaner steel in Europe.
Adopted on Wednesday with 48 votes in favour, 30 against and two abstentions, the draft rules include proposed low-carbon steel credits. For passenger cars, Members of the European Parliament (MEPs) want to lower the 2035 fleet-wide CO2 emissions reduction target from 100% to 87.5%. Manufacturers would have to compensate for emissions capped at 7.5% – of the 2021 EU fleet-wide reference target – to reach a target of 95%, by using credits for low-carbon steel made in the EU.
For vans, MEPs propose a 35% reduction target by 2030, compared with 40% in the European Commission text and 50% under the existing rules. The 2035 target would decrease from 100% to 80% – in this case, low-carbon steel credits could be used, subject to a 7.5% cap.
From the entry into force of the rules and until the end of 2034, however, low-carbon steel credits may count for no more than 3% towards meeting specific targets for both cars and vans, Kallanish notes.
Welcoming the vote, Eurofer says: “The proposed low-carbon steel credit would reward carmakers for using qualifying low-carbon steel, helping create demand for cleaner steel.”
Director general Axel Eggert notes: “Low-carbon steel made in Europe should go into cars made in Europe. A dedicated steel credit can help turn Europe’s decarbonisation ambitions into real investment, production and quality jobs. This is how we strengthen two strategic European industries while cutting emissions.”
MEP and Rapporteur Massimiliano Salini says: “Registering combustion engine cars without compensation obligations would remain possible, protecting technological freedom and restoring prospects for the entire supply chain. Decarbonisation does not mean imposing one technology – we also recognise as zero-emission vehicles powered exclusively by renewable fuels that comply with the renewable energy directive, similar to electric ones. Low-carbon steel made in Europe could be used immediately, rewarding European production and strengthening the Union’s strategic autonomy”.
ENVI’s proposal is expected to be voted on during the European Parliament’s December plenary session.
