Europe’s steel industry has welcomed European Commission President Ursula von der Leyen’s focus on competitiveness, affordable energy and a level playing field, saying these conditions were vital to keep industrial investment and production in Europe.
Reacting to today’s State of the Union speech, the European Steel Association (EUROFER) particularly welcomed the recognition that structurally high energy prices and growing trade imbalances were threating Europe’s ability to remain an industrial powerhouse. EUROFER argues that the focus must now shift to delivery: lower electricity costs, affordable hydrogen, lead markets for low-carbon Made-in-Europe steel and an ETS framework aligned with industrial reality. The Association said the Commission’s Steel and Metals Action Plan adopted last year, provides a blueprint for a more integrated European industrial policy and should be implemented across the steel value chain.
Axel Eggert, Director General of EUROFER, said: “President von der Leyen has rightly put competitiveness, climate and autonomy at the heart of Europe’s future - ambitions that cannot be delivered without a thriving industrial base. European steelmakers remain committed to climate neutrality: the technology is moving forward, but the business case must move forward with it. We need affordable energy and strong Made-in-EU lead markets if low-carbon steel is to be made here rather than simply consumed here. Valuable secondary raw materials should also remain within the EU economy rather than being exported to countries that do not have comparable climate ambitions or export restrictions.”
EUROFER said forthcoming decisions on the EU Emissions Trading System (ETS) will be critical. As the EU’s Carbon Border Adjustment Mechanism (CBAM) is introduced, the phase-out of free allocation should reflect whether it is effectively preventing carbon leakage and whether European producers have access to the energy and technologies needed to decarbonise competitively.
The Association also warned that rising carbon costs could shift the risk of carbon leakage further down the value chain, as more steel-intensive finished products are imported from countries operating under different carbon and trade conditions. EUROFER therefore supports stronger protection for relevant downstream products, alongside Made-in-Europe criteria that reward investment in low-carbon European production.
Mr. Eggert added: “A more realistic pace for withdrawing free allocation, where necessary, would not weaken Europe’s climate objectives. It would help ensure the ETS supports investment and emissions reductions without accelerating the loss of production. Europe does not have to choose between competitiveness and decarbonisation. If it wants greater autonomy, more renewable energy and a successful green transition, it needs the industrial capacity to deliver them. That means keeping steel made in Europe.”
.png)
