After its open letter recently written on the occasion of the first European Steel Day (May 19) stating its concern over the climate change policy of the European Union (EU), the European Confederation of Iron and Steel Industries (EUROFER) has now published a message on EU climate change policy addressed to the G8 summit taking place in Deauville, France on May 26-27.
The message written by Gordon Moffat, director general of EUROFER, suggests that EU climate policy does not allow for growth of the most carbon-efficient steel companies in the world and leaves even the best performers unprotected, with billions of additional unilateral costs. While the global competitors of the European steel industry grow quickly, the quasi-ban on growth under the EU Emissions Trading Scheme (ETS) will directly lead to leakage of CO2, production and jobs. Further increasing the EU's own target as currently discussed will just drive production out of Europe, according to the EUROFER statement.
EUROFER said that the European steel industry provides the foundation for innovation, durability, CO2 reductions and energy savings in various applications. For example, a recent study by the Boston Consulting Group (BCG) on the German steel industry compares the CO2 savings from innovative steel applications - such as more efficient power stations, wind turbines or lighter vehicles - with the CO2 emissions from steel production. EUROFER said the study shows the savings potentials achieved through the use of steel are higher than the emissions from steel production in Germany.
Pressure on industry should therefore not be increased by further unilateral targets that are not supported by technology, EUROFER argued. Policy must support rather than hinder the development of the technologies necessary for carbon reductions, EUROFER said, adding that only industry can provide the applications that are essential.