The European Steel Association (EUROFER) has called for measures to ensure that the decarbonization of the European steel industry supports the sector’s competitiveness and maintains production, investment and employment in Europe.
EUROFER made the statement following a meeting at the European Parliament attended by around 100 members of the European Parliament, steel industry executives and other stakeholders, which focused on how the European steel sector can decarbonize while maintaining its industrial base.
High energy costs and global competition pressure European steelmakers
According to the association, high energy costs and global competition continue to put pressure on European steelmakers. The EU’s Steel and Metals Action Plan should provide conditions that allow steel producers to remain competitive and continue investing in Europe.
The association also stressed the need to create predictable demand for low-carbon steel to support investments in decarbonization projects. In this regard, EUROFER pointed to the Industrial Accelerator Act and measures promoting the use of low-carbon steel in the automotive sector as potential instruments for creating lead markets for steel produced in Europe.
ETS and CBAM decisions seen as critical for competitiveness
In addition, EUROFER stated that upcoming decisions concerning the EU Emissions Trading System (ETS) and Carbon Border Adjustment Mechanism (CBAM) will be critical to preventing carbon leakage while maintaining the competitiveness of European steel production. According to EUROFER, Europe’s green transition should ultimately strengthen the region’s industrial base and support growth rather than weakening European industry.
European Commission Executive Vice-President Teresa Ribera stated that Europe’s industrial strength and sustainable future must advance together, adding that the EU should create the conditions needed for industrial transformation while companies are responsible for delivering investments, innovation and employment.
Meanwhile, EUROFER President Henrik Adam welcomed the progress made by the EU so far, including the Steel and Metals Action Plan, but stated that further measures are required to achieve a broader industrial transformation. According to Adam, Europe needs to strengthen industries throughout the value chain to establish a competitive “Made in Europe” industrial ecosystem, while substantially reducing energy costs. He stressed that competitive and affordable energy is essential for European industry to decarbonize while continuing to produce and invest in the region. The European steel industry is ready to contribute to the transition, but warned that Europe risks falling behind as other major economies strengthen their industrial bases, Adam added.
