A broad coalition of European electric arc furnace (EAF) steel producers, major metal recycling operators and Recycling Europe (formerly EuRIC - European Recycling Industries’ Confederation) has sent a letter to European Commission President Ursula von der Leyen and several Commissioners, expressing “serious concerns” over the current direction of the EU debate on defining and labelling so-called “green steel”.
The initiative - described by the signatories as unprecedented - highlights the convergence of positions across the circular steel value chain, traditionally characterised by differing interests. Recycling Europe, the European association of metal recovery and recycling companies, of which Italy’s Assofermet is a long-standing member, is among the main promoters of the action.
Dated November 14, the letter challenges the idea of introducing a single green steel label based on sliding scale methodologies, a model initially developed for the coal-based blast furnace-basic oxygen furnace (BF-BOF) route. According to EAF-route stakeholders, such an approach would “fail to properly recognize” the already low-CO₂ performance of electric arc furnace steelmaking, which accounts for about 45 percent of European steel output and is largely electrified and recycling-based.
Sector representatives argue that applying this scheme uniformly across all production routes would be “counterproductive”, effectively neutralizing the climate benefits of scrap use and the circularity inherent in EAF processes. They further note that the methodology appears unbalanced, as it has been developed - according to the letter - through consultations “almost exclusively with primary producers”, with insufficient involvement of recycling-route stakeholders
Risk of market distortions and increased dependency on imports
According to the signatories, a poorly calibrated single label could generate significant distortions. A system designed to incentivize decarbonisation in the primary route, if imposed also on already low-emission products, could lead to the displacement of European EAF production in favour of higher-carbon imports. Such an outcome, they warn, would undermine the EU’s decarbonisation objectives while heightening Europe’s dependence on imported raw materials, with negative consequences for industrial resilience and economic security.
The coalition also notes that a label focusing only on Scope 1 and Scope 2 emissions would overlook a substantial share of upstream emissions (Scope 3), which are particularly relevant for ferroalloys and DRI/HBI. This would render the methodology “irrelevant and ineffective” for sound comparison across both carbon and stainless steel products.
Call for differentiated approach aligned with EU industrial structures
The signatories urge the Commission to avoid a one-size-fits-all approach that homogenizes production routes with fundamentally different cost structures, energy requirements and emission profiles. Instead, they call for a methodological framework aligned with existing EU instruments that already connect circularity with carbon-footprint reduction.
Broad representation of European steel value chain
The letter was signed by EAF steelmakers operating in 15 European countries, as well as by major recycling operators represented by Recycling Europe. Among the signatories are leading metal-scrap shredding companies such as Galloo, EMR, Stena and Kuusakoski, together with numerous EAF steel groups including Acciaierie Venete, AFV Beltrame, Celsa, Feralpi, Grupo Industrial, Megasa, Ori Martin, Pittini, Riva, Sidenor, Tenaris and Valbruna.
Willingness to engage in dialogue
The circular steel value chain reiterates its readiness to contribute to the development of a balanced and scientifically robust framework. Europe, they emphasize, already hosts a world-leading low-CO₂, circular steel system - one that should be strengthened rather than disadvantaged during the climate-transition phase.
