German Steel Association: The Industrial Acceleration Act does not sufficiently protect the steel sector

According to the Commission’s proposal, starting from January 1, 2029, a 25% quota for emission-reduced steel will be applied in public works, infrastructure and transport projects, as well as in other public support measures. However, the German Steel Association points out that while this quota is linked to “Made in EU” requirements in other sectors, for steel it only includes sustainability criteria. The draft does not contain binding requirements such as minimum shares or net value-added quotas for steel produced in the EU.

WV Stahl Managing Director Kerstin Maria Rippel stated: “The steel industry is now officially designated as a strategic sector – this is a positive development and we thank the German government for its commitment. Nevertheless, the draft is not satisfactory. We receive ambitious climate targets from Brussels, but there is no industrial policy guarantee for the transition to climate neutrality on the ground. If the Commission’s proposal enters into force in this form, low-emission imported steel could meet the same quotas as steel produced in the EU. This weakens investment security for our industry and weakens Europe as a location.”

Rippel emphasized that although the IAA would create additional demand for low-emission steel, it does not structurally secure demand for domestic production in the EU. The draft also lacks concrete proposals for a voluntary steel label. Instead, the Commission refers to ongoing procedures under the Ecodesign and Construction Products Regulation and suggests the possibility of classification via delegated legislation.

The German Steel Association calls for the demand incentives created by the IAA—referencing the December 2025 automotive package—to be extended with “Made in EU” criteria to other critical sectors such as construction, infrastructure, and energy.

Rippel added in her statement: “The Commission’s proposal falls far short of the steel industry’s expectations. This situation has the potential to negatively affect investment decisions in the EU and to encourage value creation outside Europe. The vulnerability of our supply chains is clearly evident in the conflicts in the Middle East. Emission-reduced steel is vital for achieving the EU’s climate targets and strengthening defense capabilities. If Europe takes resilience and climate goals seriously, it needs to strengthen targeted domestic production!”