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19 Mar 2025

EU takes first steps to preserve the Steel Industry in Europe

EUMICON welcomes the European Commission's "Steel and Metals Action Plan," which was adopted today. 

"Until recently, it was unclear whether the European Commission recognised the enormous challenges facing the European steel industry. Therefore, I see the publication of the 'Steel and Metals Action Plan' as a very positive signal," says Andreas Henckel-Donnersmarck, EUMICON President.

The plan contains many positive elements, such as improving access to clean and, above all, affordable energy, as well as trade protection measures. However, some crucial aspects are still missing, particularly the extension of the free allocation of emissions trading certificates for sectors subject to the Carbon Border Adjustment Mechanism (CBAM). 

The steel industry is one such sector, with free allocation set to expire in 2034. Extending free certificate allocation is an effective safeguard against production relocation due to high CO₂ costs in Europe (protection against carbon leakage) and an essential prerequisite for the green transformation of the steel industry.

"If free allocation ends, production costs will increase massively, investment funds for green transformation will be depleted, and the steel industry will face a severe loss of competitiveness," explain Andreas Henckel-Donnersmarck and Association Director General Roman Stiftner.

No Plan for Europe-Wide Energy Price Reduction

Regarding access to affordable energy, the European Commission refers to the Action Plan for Affordable Energy, which includes some positive measures, such as adjustments to grid charges, energy taxes and levies, and electricity purchase agreements for industrial enterprises. However, "a concrete plan is missing to quickly lower energy prices in Europe so that the energy-intensive steel industry, which competes internationally, can maintain production in Europe in the medium and long term," says Stiftner.

"A crucial first step has been taken, but now the real political challenge begins—to turn the commitments on paper into swift and effective action for the steel industry. Time is running out for Europe," concludes Andreas Henckel-Donnersmarck.