Steel trade body Eurofer has called for more commitment from China in reducing its CO2 emissions.
It said policy makers at the Copenhagen climate talks should secure equal treatment for its competitors in developed and emerging economies.
Eurofer fears any agreement at Copenhagen may be taken as an excuse by the European Commission to eliminate free allowances or reduce the list of sectors eligible for free allowances under the EU emissions trading scheme.
The body said China alone is responsible for over 50% of CO2 emissions from global steel production, the 27 EU member states account for only about 8%. The climate change objectives will not be achieved if large industrial emitters such as the Chinese steel industry are not subject to equal CO2 emission reductions.
“If equal burdens within sectors producing globally traded goods are not part of the International Agreement, allowances free of charge and additional measures to prevent carbon leakage must be continued in their entirety under the EU ETS”, said Gordon Moffat, Eurofer director general.