The Commission adopted the Steel and Metals Action Plan (SMAP) on March 19 to address significant challenges affecting the competitiveness of the EU metal industry. One of the key elements of this plan is to promote metal circularity, which not only supports the decarbonization of metal industries but is also in line with the Commission's proposal to achieve a 90% reduction in net greenhouse gas emissions by 2040 compared to 1990 levels.
The EU is experiencing a decline in the availability of metal scrap for recycling due to “scrap leakage” to third countries. The US's imposition of a 50% tariff on a wide range of steel and aluminum products (excluding scrap) and the increase in global prices for primary materials could exacerbate this issue by encouraging the export of scrap abroad.
In order to ensure sufficient scrap access for EU metal industries, the Commission will closely monitor metal scrap imports and exports to collect more structured and detailed information on scrap entering and leaving the EU. The customs surveillance system can strengthen the resilience and sustainability of EU metal industries by providing information to enable the Commission to take targeted trade measures to ensure sufficient scrap supply and prevent shortages.
The Commission is also collaborating with industry stakeholders to assess how and in what manner the classification of scrap into basic categories can be advanced to improve the tracking of metal scrap and obtain more detailed data. The Commission will use import and export data to assess whether any additional action is necessary by the end of the third quarter of 2025.
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