Spanish steel producers' association UNESID has called for stronger support to offset indirect carbon costs, warning that the proposed €157 million allocation for 2026 is €43 million below the sector's estimated requirements, further weakening competitiveness amid elevated energy costs, according to local reports.
Funding falls short of €200 million requirement
UNESID estimates that steelmakers require €200 million in compensation for carbon allowance costs passed through electricity prices, leaving the proposed funding 21.5 percent below the necessary level. The association warned that insufficient support places Spanish producers at a disadvantage against European competitors and constrains production and investment decisions.
Industry seeks lasting energy cost relief
The association provisionally estimates the sector's additional energy costs at €658 million between March and December 2026, compounded by electricity system adjustment charges that have prompted some plants to halt production during peak-price hours.
Alongside increased carbon compensation, UNESID urged predictable funding for future years and permanent reductions in electricity network charges for energy-intensive consumers, stressing that a stable energy framework is essential to safeguard industrial activity and investment in Spain.
