Callanish notes that GravitHy, Outokumpu, SSAB, Stegra and Hydnum Steel are calling on the EU to maintain the current level of ambition for its Emissions trading System (ETS).
A group of clean steel producers is responding to calls from other European steel companies to suspend the implementation of the system, arguing that a strong and predictable carbon price signal is needed to attract investment in low-carbon technologies.
Their joint statement, reviewed by Callanish, says that the foundations for decarbonization investments have already been laid, including the Carbon Boundary Adjustment Mechanism (CBAM) and protective measures for steel, as well as additional tools being developed.
However, the signatories of the agreement warn that in order to realize investments, decarbonized products must be able to compete with alternatives based on fossil fuels.
They argue that the EU ETS is a key tool for achieving this goal. "Maintaining the trajectory of rising CO2 prices is essential both for achieving the European Union's climate goals and for its industrial ambitions," the statement said.
It identifies three priorities, including ensuring long-term regulatory stability, preserving the integrity of the ETS, and channeling revenue to industrial transformation.
According to the Climate Leadership Coalition (CLC), the European steel sector is entering a new and key investment cycle as blast furnaces are gradually being decommissioned.
Production technologies with almost zero emissions are being developed, including direct hydrogen-based reduction and steel smelting using the EDP method.
Carbon pricing is an essential condition for the competitiveness of pure steel. "ETS has begun to provide what industrial investment needs most: a reliable long-term, technologically neutral price signal Without this price signal, the economic prerequisites for transformation weaken, and in the worst case, investments are directed towards restoring the capacity of old blast furnaces that pollute the environment, rather than industrial transformation," it says. in the note of the coalition.
Tates.
"The EU ETS program ensures the reduction of emissions and at the same time lays the foundation for the industrial transformation of Europe. The challenge now is not to redesign the system, but to preserve and strengthen what works, and ensure that the design of the system continues to reward investment in a clean transition," the memo says.
The coalition calls for a sustainable and predictable trajectory for the development of ETS after 2030, in which
