When Europe's heads of state meet next week, the steel industry is hoping that they will adjust the current draft policy framework so that European steelmakers can remain competitive on a global level.

In an open letter, published last week and representing the views of 60 steel industry CEOs, steel industry bosses argued that, in its current form, the draft European Climate and Energy Policy framework jeopardised 335,00 direct and 1.5 million indirect steel industry jobs. They warned that 'if no clear guidance for safeguarding the competitiveness of industries exposed to global competition' was established the steel industry in European would be seriously compromised going forward.

It is argued that, once implemented, the EU emissions trading system (ETS) alone will cost the EU steel industry around EUR70 to EUR100 billion over the period 2020 to 2030.

The aforementioned 60 steel industry CEOs argue that 'a healthy foundation industry benefits European society as a whole and that the steel industry's products and product applications and employees, are the foundations for a low carbon, energy efficient and prosperous European society'.

The CEOs argued that it is vital to have realistic, sector-based targets that are set according to what is technically and economically possible – as opposed to theoretical targets that are impossible to achieve – and want 'clear guidance that the EU's new climate and energy framework will not impose regulatory direct or indirect CO2 costs on globally competing European industries.