EC report confirms EU climate policies unachievable by European steel industry

The European Commission's (EC) in-house science service Joint Research Centre (JRC) has published a report regarding the prospective scenarios on energy efficiency and CO2 emissions in the European iron and steel industry. The European Steel Association (EUROFER) underlines that the report confirms that the EU steel industry cannot work under future European emissions targets.
 
The JRC study shows that the emission targets set by EU climate policies are unachievable for the European steel industry. The industry can reach a maximum of 11 to 19 percent CO2 emission reductions up to 2030 if it applies current best technologies and innovative solutions that may become available in the future. However, the EU Emissions Trading Scheme (ETS) set a 37.4 percent target for 2030.
 
The report states that higher carbon prices are "ineffective as major levers of change". According to EUROFER, the maximum abatement values of 11 to 19 percent the authors have identified refer to the two major steel production routes via electric arc furnaces and blast furnaces. Both values are based on a scenario with a carbon price of €200/mt. This shows that even under the pressure of an extremely high carbon price the steel industry will not be able to develop and implement technologies for reductions beyond 19 percent.
 
"This study, carried out by the Commission's own research body, shows that our claims about emission targets being unachievable for the industry and a serious danger for Europe's industrial base are more than justified. It also highlights how the European steel industry is under constant pressure to reduce emissions while necessary technologies to do so are unavailable," said EUROFER director general Gordon Moffat.