The European Steel Producers Association (EUROFER) CEO Axel Eggert stated in a commentary to the European Commission the proposal to revise the European Union's Emissions Trading System (ETS), that the complete decarbonization of the European steel industry by 2033 is not realistic without access to affordable clean electricity and hydrogen.
Eggert said that the European Commission expects the European steel sector to decarbonize by this date, in accordance with the regulation, which provides for the phasing out of free emission quotas by the end of 2033. However, he stressed that the industry's most important question remains unanswered, as it is still unclear where the available electricity and hydrogen will come from. Noting that companies are expected to invest several billion euros, Eggert said it remains uncertain whether the electricity and hydrogen infrastructure will be ready in time, whether sufficient amounts of clean electricity will be available, and whether these resources will be supplied at prices that will allow the EU steel industry to maintain its global competitiveness. According to EUROFER, the proposed regulation of phasing out free emission quotas does not eliminate the investment uncertainty facing the sector. In particular, the continuation of the planned reduction in free quotas for the steel sector during 2029-2030 and the risk of a sharp decline in core steel prices in accordance with the benchmarking rules in 2031 may weaken both protection against carbon leakage and incentives for companies that invest at an early stage. Eggert also noted that the proposal once again does not include the long-awaited structural solution for exports under the Carbon Boundary Regulation Mechanism (CBAM). He added that the new conditions for providing free benefits create additional administrative burden and legal uncertainty, especially in cases where investment decisions depend on factors beyond the direct control of companies. Eggert said that the European Union has set ambitious climate conditions.
These goals have been set, but the necessary infrastructure and supportive conditions, repeatedly promised by Member States, have not yet been created to achieve these goals. He commented: "If these conditions are not met, ETS only sets a deadline, but does not offer a reliable roadmap to achieve this goal." Recalling that the European steel sector is already investing in replacing about 35% of its traditional steel production capacity with hydrogen plants between 2030 and
