The European Commission has proposed an amendment to EU climate legislation aimed at reducing net greenhouse gas (GHG) emissions by 90 percent by 2040 compared with 1990 levels. While this statement demonstrates a strong commitment to fighting climate change, it has also raised serious concerns in the European steel sector, which plays a crucial role in decarbonization efforts.
Commenting on the amendment, the European Steel Producers Association (EUROFER) said that the European steel industry is already contributing, but it is facing growing challenges due to insufficient support mechanisms and unclear economic incentives. The Association stated that the EU needs to implement the Steel and Metals Action Plan much more decisively, providing highly effective trade protection against global overcapacity, access to internationally competitive low-carbon energy sources and scrap metal, as well as a robust Carbon Boundary Regulation (CBAM) mechanism.
Noting that the EU steel industry plans to implement more than 60 industrial-scale projects that can significantly reduce emissions by 2030 if they receive timely and effective support. EUROFER stated that many projects have already been postponed, and some have been stopped altogether due to lack of support. "In this light, the 90percent target for the entire EU by 2040 risks becoming an illusion," said Axel Eggert, CEO of EUROFER, highlighting the unrealistic decarbonization rates expected from energy-intensive sectors.
Steelorbis.com
