Eurofer supports the bold target issued by the European Commission of reducing some -55% of EU CO2 emissions by 2030, but remains concerned over possible further cuts to Emissions Trading Scheme (ETS) allowances.
The Commission this week confirmed it has revised upwards its target for emissions reduction, bringing it to 55% below 1990 levels by 2030. The steel sector agrees with this target, going as far as indicating that carbon neutrality will be achieved by 2050. However, Eurofer says a set of measures is needed to support the transition.
Eurofer has asked the Commission to assure the steel sector “…support for investment in innovation and roll-out the creation of a market for green materials, the availability of the appropriate renewable energy sources, an international level playing field, and the application of the EU trade defence instruments without inhibition against third country trade distortions.”
In addition, Axel Eggert, director general of Eurofer, has expressed concerns over the possibility of increasing the reduction factor of EU ETS and cancelling allowances. “This would expose the sector to higher carbon costs at a time when low-carbon investments are desperately needed,” he says in a note seen by Kallanish.