European steelmakers have warned that efforts to decarbonize the industry are threatened by energy price bans combined with high carbon prices.
The warning from the European Steel Association (Eurofer) coincides with the European Council's Environment Council meeting next week. "Key European industries like steel cannot afford all the energy and climate costs we live in today and which they may face in the years to come if policymakers don't make the right decisions now," said Axel Eggert, Eurofer managing director. says.
The EU needs to maintain its decarbonisation target of 55% emissions reductions by 2030 through a sustainable transition that allows industry to invest and provide for the workforce and millions of dependent households. "If the transition is not sustainable, we risk flooding the European market with "dirty" cheap steel from third countries like China, Russia or Indonesia."
Eurofer says energy-intensive companies that are already facing price increases have had to respond by reducing production or shutting down factories temporarily. He complains that gas and electricity prices have risen exponentially, up to five times higher than last year. In parallel, increases in carbon prices of up to 80-90 Euros have an increasing impact on electricity prices.
'While this unprecedented crisis in energy markets requires additional urgent action, EU leaders also need to consider the impact of the upcoming revision of climate legislation, in particular the revision of the Carbon Limit Adjustment Mechanism (CBAM) and the EU ETS.' said.
Comments
No comment yet.