The European Steel Association (EUROFER) has stated that the European Commission’s pledge to reduce carbon emissions by 90 percent by 2040 requires an unparalleled transformation of EU society and industry. Even though the steel sector is already keeping up its end, investments remain very low. According to EUROFER, the EU needs a concrete solution offering an investment-friendly framework that centers around affordable energy and an international field. The association warns against the risk of deindustrialization and highlighted three steps that need to be taken in order to support decarbonization.
“The EU steel industry backs the EU climate neutrality objective by 2050 and has launched over 60 projects that will deliver major emission reductions by 2030 if supported effectively. A 90 percent headline target for the whole of the EU by 2040 means almost a full decarbonization of energy intensive industries such as steel. In the absence of the right enabling conditions and of a drastic ramp-up of investments required for the transition, such a target puts the economic and technical feasibility of EU climate policy and its interaction with other policies such as energy, trade and competition to the test. This could contribute to deindustrialization, thus undermining the EU’s resilience and strategic autonomy,” Axel Eggert, director general of EUROFER, stated.
Mr. Eggert emphasized that it is crucial to close the EU’s competitive gap through giving access to affordable clean energy and hydrogen along with the necessary raw materials and secondary materials. Despite the progress seen at COP28, environmental efforts are still diverging globally, and new investments are not in line with these efforts. “For instance, additional non-market global capacity for 150 million mt of steel production is planned by 2026, with most investments in third countries focusing on carbon-intensive technology. Therefore, an assertive trade policy levelling the playing field with other regions that do not share the same climate ambition is indispensable,” the EUROFER official continued.
Finally, according to Mr. Eggert, the EU has to create an innovative and comprehensive policy that will extend industrial competitiveness to all policy areas, create a layout for low-carbon investment and build a leading market for green products.