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Eurofer: Decarbonising the steel sector requires affordable low carbon energy

by David Fleschen

The European Commission is expected to put forward its Fit for 55 package of climate and energy policy measures on 14 July 2021. The Fit for 55 package is one of the most significant - and largest - groups of measures the EU has ever released in one go. It will completely revise the basis of EU climate and energy policy in attempt to bring it into line with the EU's political ambition.

“EU institutions have agreed to more ambitious cuts to greenhouse emissions over a fairly short time frame. This package of new laws to be proposed by the Commission is intended to legislatively implement the political ambition”, said Axel Eggert, Director General of the European Steel Association (EUROFER).

The Fit for 55 package includes: the revision of the EU Emissions Trading System (ETS), a Carbon Border Adjustment Mechanism (CBAM), revision of the Energy Tax Directive (ETD), amendments to the Renewable Energy (RED) and Energy Efficiency Directives (EED) to implement the ambition of the new 2030 climate target, as well as others on reduction of methane emissions from the power sector, emissions from land use and rules on passenger cars and alternative fuels.

“The European steel industry has long-established plans to reduce emissions by 55% compared to 1990 levels, and has over a hundred highly-advanced low-carbon projects spread across Europe”, added Mr Eggert. “However, the success of these projects its contingent on being able to direct the appropriate resources and find markets for the resulting ‘green’ steels, which will come at a higher cost than conventional steel”.

Mr Eggert stated: “For Fit for 55 – and the associated Green Deal – to become successful growth strategies, they must provide three things: effective carbon leakage protection, affordable low-carbon energy, and firm support for the development and roll-out of breakthrough technologies”.

Source: Eurofer, Photo: Fotolia

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