The European Commission prescribes the use of low-emission steel, not "made in the EU’
The European Commission has confirmed that its legislative proposal for the Industrial Acceleration Act (IAA) 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 the EU" requirement was not included, as was the requirement for voluntary labeling of low-emission steel.
For public procurement and other projects requiring government intervention in one form or another, the production volume of steel and any product whose characteristics depend mainly on steel must contain at least 25% low-emission materials. This will take effect for projects launched and updated or put into effect on January 1, 2029.
However, unlike aluminum and cement, the proposed made in EU public procurement mandate does not apply to steel. "In light of the recently proposed trade measures aimed at addressing the negative effects of global overcapacity on the European Union steel market, the introduction of European steel preferences is not considered necessary," the Commission said in a document reviewed by Callanish.
The legislative proposal also falls short of the preferred policy option of adopting voluntary steel labeling in support of low carbon steel investment decisions.
Instead, the upcoming delegated law on steel products in accordance with the Regulation "Ecodesign for Sustainable Products" (ESPR) will provide the necessary elements for the implementation of the main provisions on the steel market. The Commission notes that this "takes into account the differences in decarburization characteristics between primary and secondary steel producers and promotes cyclicity."
"When developing labeling and information requirements based on performance thresholds for various products, such thresholds should take into account the recyclable content of an industrial product, while the threshold value decreases with increasing recyclable content in products, where appropriate," it adds.
The IAA's goal is to increase the share of the manufacturing sector in EU GDP to 20% by 2035, up from 14.3% in 2024.
It also proposes to change the conditions for large investments in strategic industries exceeding 100 million euros (116 million dollars), where one third country controls more than 40% of global production capacity. They will include the need for technology transfer, 50% of the staff will work in the EU, and foreign participation.