EU steelmakers back carbon neutrality by 2050 but require further much needed support, says Eurofer in response to the latest announcement by the European Commission of a 90% target on decarbonisation by 2040.
“The EU steel industry has launched over 60 projects that will deliver major emission reductions by 2030 if supported effectively. A 90% headline target for the whole of the EU by 2040 means almost a full decarbonisation of energy intensive industries such as steel. In the absence of the right enabling conditions and of a drastic ramp-up of investments required for the transition, such a target puts the economic and technical feasibility of EU climate policy and its interaction with other policies such as energy, trade and competition to the test,” says Eurofer director general Axel Eggert.
The association adds there is a concrete risk of deindustrialisation in Europe if the transition is not supported, Kallanish notes.
Eurofer has called again for the EU to ensure the supply of affordable clean electricity and hydrogen to support the transition. It also reminded the European Commission that only an “assertive trade policy levelling the playing field with other regions that do not share the same climate ambition” can make EU industry viable.
The Commission published on Tuesday a detailed impact assessment on possible pathways to reach the agreed goal of making the EU climate neutral by 2050. Based on this impact assessment, the Commission recommends a 90% net greenhouse gas emissions reduction by 2040 compared to 1990 levels.
“With their integrated innovation ecosystem across the full manufacturing value chain, European steel companies have already identified the technological solutions for the transition to climate neutrality. However, as acknowledged also in the Commission Communication, the enabling conditions still fall short. In view of the next legislative cycle, we call on the EU institutions to urgently put in place an investment-friendly framework for a successful industrial transition in Europe,” Eggert concludes.
Emanuele Norsa Italy