The requirement of the Industrial Acceleration Act (IAA) "Made in Europe" should be extended to steel to help boost domestic DRI/HBI production planned in the region, according to Callanish from the sources.
In March, the European Commission confirmed that its IAA legislative proposal includes a provision that 25% of the volume of steel purchased for government projects starting in 2029 should be low-emission. However, given the upcoming new steel trade regime, the "Made in Europe" requirement was not included, as was the requirement for voluntary labeling of low-emission steel.
One of the sources says that the current situation reflects the compromises reached in Brussels, noting that although "there is a concept of environmentally friendly steel that is a good signal," it does not yet include a strong "Made in Europe" component.
They describe the IAA as a "missed opportunity," although they say discussions are still ongoing. "They say that this is not the end, some negotiations are still ongoing, but the position of some countries was not to include European-made steel in public procurement. We need very clear criteria for "Made in Europe"."
Although demand for "green steel" remains low at present, some segments are beginning to show signs of recovery. Industry sources report that the European Commission is working on the definition and labeling of environmentally friendly steel, and many of them are pushing for a simplified classification system.
Car and component manufacturers are starting to drive demand as they need to reduce carbon dioxide emissions in their European supply chains. Recent purchases of low-carbon steel by automakers prove that demand for it is growing. "In the future, they will need environmentally friendly steel, which implies an increase in demand for HBI as part of the low-carbon steel value chain," the source says.
"If you want to preserve an industry that is experiencing difficulties, you cannot work according to the old model of steel production and sale, it is no longer sustainable. You need to reduce energy costs, you need to encourage people to invest, and you need to create demand for real transformation to take place," they add.
Another source wonders how such labeling will be determined in practice, asking: "What is "green steel"? What is produced in Europe? How far along the supply chain should this definition extend, and will raw materials such as HBI be included?". "Compromise
