Major European steelmakers have published a joint statement in which they urge the EU to ‘defend the integrity of ETS1 and avoid measures that artificially depress the carbon price’.
Outokumpu, SSAB, Salzgitter AG, Saarstahl, Dillinger, and SHS stated that the European Trading System 1 (ETS1) is key, as it provides a market-based carbon price signal that supports the business case for industrial decarbonisation.
Part of the statement reads: “Weakening the ETS1 would not strengthen Europe’s competitiveness. On the contrary, it would erode investment certainty, penalise early movers and delay the industrial transformation Europe needs.
“The primary pressure on competitiveness comes from high electricity costs due to fossil fuel dependencies, infrastructure gaps and global steel overcapacity, not from carbon pricing.”
The statement also covered the commencement of the Carbon Border Adjustment Mechanism, which came into effect on 1 January 2026.
“CBAM has entered its operational phase and now must demonstrate its effect. Its credibility and effectiveness will depend on closing existing loopholes by adding steel-intensive downstream products, preventing abusive practices ex-ante and by developing a permanent export solution.
“A strong ETS1 combined with a robust and fully implemented CBAM can reinforce Europe’s competitiveness, resilience and industrial renewal. To make this transition investable, ETS1 revenues must be channelled back into industrial decarbonization, with a particular focus on CBAM sectors.”
The statement closed with: “We therefore urge EU institutions to defend the integrity of the ETS1 and avoid measures that artificially depress the carbon price, as well as support the rapid strengthening of CBAM.
“A strong, low-emission, competitive European steel industry is not only an industrial priority, but a cornerstone of Europe’s sovereignty, security and resilience.”
