The declaration stated that more than EUR 10 billion in capital expenditure (CAPEX) has been committed to low-emission production and modernization investments, emphasizing that a predictable, reliable and clear policy framework is needed to ensure these investments can be sustained.
The joint declaration was signed by Outokumpu, SSAB, Salzgitter AG, Saarstahl, Dillinger and SHS – Stahl-Holding-Saar.
The declaration stated that the European steel industry is at a critical turning point, noting that the investment decisions taken today will determine whether production, employment and industrial value added remain in Europe for many years to come. The companies said they have allocated more than EUR 10 billion to low-emission production facilities and modernization investments, adding that a stable regulatory framework is essential for further investments to continue.
The statement said that ETS1 remains the cornerstone of the EU's climate policy, emphasizing that the carbon price signal is of critical importance for industrial decarbonization investments. In this context, the companies called for the Linear Reduction Factor to remain at 4.4% until at least 2035, while the rules for the 2035-2040 period should be aligned with the EU's 2040 Climate Law. They also called for maintaining the current timetable for the CBAM factor and the gradual phase-out of free allowances, while ensuring that the Market Stability Reserve is not used in a way that would artificially increase the supply of carbon allowances.
The joint declaration stated that weakening ETS1 would not improve Europe's competitiveness but would instead reduce investment predictability, penalize companies that invested early and delay the transformation of European industry. It also pointed out that the main pressures on the competitiveness of European industry stem not from carbon pricing but from high electricity costs, dependence on fossil fuels, infrastructure shortcomings and global steel overcapacity.
The companies stated that ETS1 can only remain effective if it is supported by a strong carbon leakage protection mechanism, stressing that imported products should bear equivalent carbon costs if European producers are required to pay for carbon emissions. In this regard, they called for closing the existing loopholes in CBAM as it enters the implementation phase, including steel-intensive downstream products within the mechanism, preventing possible circumvention and developing a permanent export solution. They also said that ETS1 revenues should be directed toward industrial decarbonization investments, particularly in sectors covered by CBAM.
The joint declaration stated that Europe has already made the strategic choice to advance its climate objectives and industrial strength simultaneously, adding that the companies have shaped their investment plans accordingly. It noted that what the companies expect from EU institutions is not a change of direction, but a clear commitment that will provide the predictability required for long-term industrial investments.
The steel producers called on EU institutions to preserve the integrity of ETS1, refrain from measures that would artificially lower carbon prices and support the rapid strengthening of CBAM. The declaration emphasized that a strong, low-emission and competitive European steel industry is of strategic importance not only for industry itself but also for Europe's sovereignty, security and economic resilience.
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