Industrial Accelerator Act must prioritise European green steel, industry warns

The current draft European Commission proposal requires a share of at least 25% of steel in public procurement and support schemes to be low-carbon. However, it does not include a binding requirement that the steel be produced in Europe.

Welcoming the draft Act’s objective of creating demand for low-carbon steel, which the steel industry recognises is essential to unlock investment, Axel Eggert, Director General of EUROFER, said, ‘Steel underpins Europe’s clean energy, automotive and defence industries. In today’s turbulent geopolitical context, it seems unthinkable that the steel industry is not being defined as strategic in the package. This goes hand in hand with strengthening Europe’s autonomy which means applying robust “Made in Europe” requirements.’

He further remarked, “The EU must seize this opportunity to create conditions that encourage lead markets that give preference to European low-carbon steel. Only steel melted and poured in the EU should therefore qualify. EEA countries - Iceland, Liechtenstein and Norway - could be also included in the scope, given their deep integration into the EU market. Without clear and ambitious “Made in Europe” rules for steel, and with an overly broad or unrestricted interpretation of origin, the European Commission risks financing green steel production from abroad instead of strengthening its own industrial base.’’

EUROFER argues that decarbonising European production already requires tens of billions of euros in investment. At the same time, persistently high electricity prices add significantly to the operational costs of new low-carbon technologies. Without guarantees that new lead markets will favour European production, investment decisions could be delayed or redirected.

EUROFER is therefore calling for: a clear and enforceable definition of Made in Europe for the steel sector, based on steel melted and poured in the EU and EEA; the application of both low-carbon and European origin criteria in in Industrial Accelerator Act; and the explicit recognition of steel as a strategic sector.