Eurofer believes the European Parliament’s Environment Committee (ENVI) vote to revise CO₂ emissions targets for cars will help create demand for greener steel in Europe.
The draft rules were approved on Wednesday, with 48 MEPs voting in favour, 30 against and two abstaining. The document includes a proposal for credits for the use of low-carbon steel. For passenger cars, MEPs propose lowering the target for reducing average fleet emissions by 2035 from 100% to 87.5%. Manufacturers would be able to offset emissions by up to 7.5% of the EU fleet’s 2021 baseline emissions, using credits for low-carbon steel produced in Europe to meet the 95% target.
For vans, MEPs propose cutting emissions by 35% by 2030. The European Commission’s draft provides for a 40% reduction, while the current rules set a target of 50%. The 2035 target is proposed to be lowered from 100% to 80%; credits for low-carbon steel could also be used in this case, but capped at 7.5%.
However, from the rules’ entry into force until the end of 2034, credits for low-carbon steel will be able to cover no more than 3% of the targets for passenger cars and vans, Kallanish reports.
Eurofer welcomed the vote.
“The proposed credits for low-carbon steel will incentivise automakers to use steel that meets the requirements and help create demand for greener steel,” the organisation said.
Eurofer Director General Axel Eggert said:
“Low-carbon steel produced in Europe should be used in cars manufactured in Europe. Dedicated steel credits can turn Europe’s decarbonisation ambitions into real investment, production and quality jobs. This is how we strengthen two of Europe’s strategic industries while cutting emissions.”
The rapporteur on the bill, MEP Massimiliano Salini, said:
“It will remain possible to register cars with internal combustion engines without obligations to offset emissions. This will preserve technological freedom and prospects for the entire supply chain. Decarbonisation does not mean imposing a single technology: we also recognise vehicles powered exclusively by renewable fuels that comply with the Renewable Energy Directive as zero-emission vehicles, on a par with electric cars. Low-carbon steel produced in Europe can be used today: this will support production in Europe and strengthen the Union’s strategic autonomy.”
The European Parliament is expected to vote on the ENVI proposal at its plenary session in December.
Author: Adam Smith, Austria
