The regulation prepared by the European Commission aims to accelerate industrial decarbonization, strengthen value chains, and increase the contribution of the manufacturing sector to the EU’s gross domestic product to at least 20%. Under the proposal, lead markets for low-carbon steel are planned to be established in sectors such as automotive, defense, and construction.
However, EUROFER argues that, in its current form, the proposal does not create a sufficiently strong demand signal to encourage the investments required for the low-carbon transformation of the European steel industry.
EUROFER Director General Axel Eggert stated that if Europe wants to decarbonize its steel sector, demand must be created for low-carbon steel produced in Europe. Otherwise, he warned that the EU risks financing foreign production while weakening its own industry.
One of the sector’s main concerns is the lack of clear rules regarding the definition of “made in the EU.” Under the current regulation, steel produced outside the EU but processed in Europe can also fall within this scope. It was noted that this could allow products from free trade agreement partners—which account for more than 75% of EU steel imports—to benefit from support mechanisms despite not being subject to similar carbon costs.
For this reason, EUROFER is calling for a single and clear origin definition covering only steel melted and poured within the EU in public procurement and support mechanisms.
The association also emphasized that the minimum usage rate of low-carbon steel in public procurement should be increased and that the regulation should be expanded to cover strategic sectors such as wind energy and electrical steel components.
According to EUROFER, failure to implement these improvements could lead to the relocation of emissions and investments outside Europe under the Industrial Acceleration Act. This, in turn, could weaken both industrial competitiveness and the EU’s strategic autonomy.
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