The European Commission has proposed an amendment to the EU Climate Law, aiming for a 90 percent reduction in net greenhouse gas (GHG) emissions by 2040, compared to 1990 levels. While the announcement signals a strong climate commitment, it has also raised serious concerns within the European steel sector, which plays a crucial role in decarbonization efforts.
Commenting on the amendment, the European Steel Association (EUROFER) has stated that the European steel industry is already doing its part, but it faces mounting challenges due to insufficient support mechanisms and unclear economic incentives. The association said that the EU needs to implement the Steel and Metals Action Plan much more decisively, delivering a highly effective trade protection against global overcapacity, access to internationally competitive low carbon energy and scrap, and a watertight Carbon Border Adjustment Mechanism (CBAM).
Pointing out that the EU steel industry has plans for over 60 industrial scale projects that could reduce emissions significantly by 2030 if they receive timely and effective support, EUROFER stated that many projects have already been delayed, and some have been stopped altogether due to the lack of support. “In this light, a 90 percent headline target for the entire EU by 2040 risks becoming an illusion,” said Axel Eggert, director general of EUROFER, stressing the unrealistic pace of decarbonization expected from energy-intensive sectors.