EUROFER: Green steel support could flow abroad under draft Act

The European Steel Association (EUROFER) has warned that the European Commission’s draft Industrial Accelerator Act could channel public support for low-carbon steel to producers outside the EU unless lawmakers add a binding “Made in Europe” requirement.

Under the current draft, at least 25% of steel used in public procurement and support schemes would need to be low-carbon. EUROFER says the proposal does not, however, require that the steel be produced in Europe — a gap it argues could weaken the EU’s industrial base at a time of heightened geopolitical and supply-chain risk.

“Steel underpins Europe’s clean energy, automotive and defence industries,” said EUROFER Director General Axel Eggert, adding that “it seems unthinkable that the steel industry is not being defined as strategic in the package.” He said strengthening Europe’s autonomy should go “hand in hand with … robust ‘Made in Europe’ requirements.”

EUROFER is pushing for an origin definition based on “steel melted and poured” in the EU, and says EEA countries Iceland, Liechtenstein and Norway could be included given their integration into the EU market. “Only steel melted and poured in the EU should therefore qualify,” Eggert said, warning that without clear rules “the European Commission risks financing green steel production from abroad instead of strengthening its own industrial base.”

The association argues that decarbonising European steelmaking requires tens of billions of euros in investment, while high electricity prices continue to raise the operating costs of new low-carbon routes. Without stronger assurances that lead markets will favour European production, EUROFER says investment decisions could be delayed or redirected.

EUROFER is calling for: a clear, enforceable “Made in Europe” definition for steel based on melted-and-poured in the EU/EEA; the application of both low-carbon and European-origin criteria in the Act’s procurement and support tools; and explicit recognition of steel as a strategic sector.

Source: EUROFER, Photo: Fotolia