Europe's steel industry has warned that the current draft European Union Industrial Acceleration Act (IAA) risks inadvertently diverting government financial support for low-carbon steel production to suppliers based outside the European Union unless stricter "Made in Europe" provisions are introduced.
The lack of clear requirements on the origin of production could weaken the industrial base, industry officials say Europe at a time when large-scale investments are required to decarbonise steel capacity.
Low carbon criteria do not meet EU production requirements
At least 25 percent of steel used in public procurement projects and government support schemes must meet low carbon standards, according to a draft proposal from the European Commission criteria. However, the proposal does not currently require qualified steel to be produced in Europe.
Welcoming efforts to stimulate demand for low-carbon materials, Axel Eggert, director general of the European Steel Association (EUROFER), said steel should be formally recognized as a strategic sector due to its important role in European value chains in clean energy, automotive and defense. He stressed that strengthening European strategic autonomy requires mandatory "Made in Europe" rules directly linked to the origin of production.
Melt and pour rule proposed for lead markets
EUROFER argued that only steel was melted and poured within the EU
