The Fit for 55 package, released yesterday by the European Commission, needs a more finely balanced approach to enable the decarbonisation of the EU steel industry while avoiding the leakage of production and CO2 emissions outside the EU, says EUROFER.
“This is the decisive decade for the industrial transition. The European steel industry has a clear roadmap showing how it could reduce its CO2 emissions by 55% by 2030 and towards climate neutrality by 2050”, said Axel Eggert, director general of the European Steel Association (EUROFER). “However, we have always emphasised the cost-effectiveness of climate policy measures, as well as the need to avoid the shifting of investment, production, jobs and CO2 emissions out of the EU to third countries with laxer environmental rules”.
The priority today should be to upscale and deploy low-carbon technologies in industry as fast as possible while remaining internationally competitive. This requires effective carbon leakage measures, markets for green steel, funding support, and affordable low carbon energy, EUROFER believes.
“European steel companies have more than 100 projects underway that could deliver significant emissions reduction but will require over €50 billion of investment by 2030.”Axel Eggert, director general, EUROFER
“European steel companies have more than 100 projects underway that could deliver significant emissions reduction but will require over €50 billion of investment by 2030”, Eggert said. “However, components of Fit for 55 would artificially raise carbon costs and reduce the amount of money available to actually cut CO2 emissions”.
From EUROFER’s perspective, the Fit for 55 EU ETS/CBAM proposal to remove financial resources through the post-2026 phase-out of free allocation – in favour of an untested and incomplete CBAM – risks hindering, rather than incentivising, low-carbon investment.
“We are committed to co-operating with the European Parliament, Member States and the Commission to making the Package a sustainable growth strategy.”Axel Eggert, director general, EUROFER
Instead, EUROFER argues, the EU steel industry transition towards climate neutrality needs to be accompanied by a comprehensive regulatory framework that supports low-carbon investment while boosting international competitiveness.
"Higher EU climate ambition requires strengthened carbon leakage protection”, Eggert stressed. “We are committed to co-operating with the European Parliament, Member States and the Commission to making the Package a sustainable growth strategy”.