Europe’s steel industry has warned that the current draft of European Union’s Industrial Accelerator Act (IAA) risks unintentionally directing public financial support for low-carbon steel production toward suppliers located outside the European Union unless stricter “Made in Europe” provisions are introduced.
According to industry representatives, the absence of clear production-origin requirements could weaken Europe’s industrial base at a time when large-scale investments are required to decarbonize steelmaking capacity.
Low-carbon criteria lack EU production requirement
Under the European Commission’s draft proposal, at least 25 percent of steel used in public procurement projects and public support schemes would need to comply with low-carbon criteria. However, the proposal does not currently require that qualifying steel be produced within Europe.
While welcoming efforts to stimulate demand for low-carbon materials, Axel Eggert, director general of the European Steel Association (EUROFER), stated that steel should be formally recognized as a strategic sector due to its essential role in Europe’s clean energy, automotive and defense value chains. He emphasized that strengthening European strategic autonomy requires binding “Made in Europe” rules directly linked to production origin.
Melt-and-pour rule proposed for lead markets
EUROFER argued that only steel melted and poured within the EU should qualify under lead-market support mechanisms, potentially including closely integrated European Economic Area countries such as Iceland, Liechtenstein and Norway.
Without clearly defined origin rules, the association warned that EU funding designed to accelerate industrial decarbonization could end up subsidizing green steel production abroad rather than supporting domestic transformation projects.
Investment certainty seen as key for decarbonization
The association highlighted that the transition toward low-carbon steel production requires investments worth tens of billions of euros, while persistently high electricity prices continue to increase operating costs for emerging technologies such as hydrogen-based steelmaking. In the absence of predictable demand for European-produced low-carbon steel, companies may delay or redirect investment decisions.
EUROFER therefore called on EU lawmakers to introduce a legally enforceable definition of “Made in Europe” based on melt-and-pour criteria, apply both low-carbon and European-origin requirements under the Industrial Accelerator Act, and formally recognize steel as a strategic industrial sector within the EU’s clean industrial policy framework.