How do European industrial associations relate to the Law on Accelerating Industrial Production?
Following the official adoption by the European Commission of the Industrial Acceleration Act (IAA), several European industry organizations commented on the law, expressing general support for its objectives, but highlighting a number of shortcomings that could limit its effectiveness.
The law aims to strengthen Europe's industrial base and accelerate the transition to low-carbon production, but stakeholders from different sectors argue that additional policy measures and clearer definitions will be needed to ensure meaningful results are achieved.
The steel industry demands stricter regulations "Made in Europe"
The European Steel Producers Association (EUROFER) welcomed the publication of the Law on Accelerating Industrial Production, calling it an important step towards strengthening European production and supporting the transition to low-carbon industrial production. However, the association warned that the current proposal may not be sufficient to support the production of environmentally friendly steel in Europe. According to the legislation, at least 25% of the steel used in public procurement and government support programs must meet the criteria for low carbon content, but the regulation does not require that this steel be produced in the EU.
EUROFER warned that this restriction could significantly weaken the impact of the policy. Government procurement accounts for approximately 25% of total steel demand in Europe, which means that the proposed requirement will affect less than five percent of the total steel market. Differences in government support schemes in EU member states also create uncertainty about the actual extent of future demand.
To strengthen the legislation, the association called for a clear definition of the term "Made in Europe" based on steel that is smelted and bottled in the EU and the European Economic Area. He also advocated combining criteria of both low-carbon and European origin, introducing a reliable labeling system for low-carbon steel products, and providing access to low-cost electricity to support industrial decarbonization.
Outokumpu supports European preferences and demand for pure steel
Finnish stainless steel manufacturer Outokumpu also welcomed the proposal, saying that the legislation represents a significant step towards strengthening the European industry while accelerating the decarbonization process.
According to the company, this law may increase the demand for environmentally friendly industrial products.,