Ahead of the European Commission's review of the EU Emissions Trading Scheme (ETS), the European Steel Association (EUROFER) has reiterated its support for the EU's goal of achieving climate neutrality by 2050, warning that the ETS can only achieve its intended results if it reflects market realities and is accompanied by the necessary conditions to support industrial decarbonisation.
EUROFER said the European steel industry has already committed billions of euros to decarbonise its operations and remains fully committed to supporting the EU's climate goals. Steelmakers have already made investment decisions covering about 35 million tons of new low-carbon steel capacity by 2033, according to the association. However, he noted that many of the favorable conditions promised to the industry have not yet materialized.
Enabling conditions remain insufficient
“The European steel industry is ready for deep decarbonization, but the EU and most member states are not. It would be an illusion to believe that the steel industry can become carbon neutral by the end of 2033 based solely on the existing ETS and CBAM schemes. Without affordable clean electricity, hydrogen infrastructure and greater access to scrap metal, the transition cannot happen at the pace envisaged,” said Axel Eggert, CEO of EUROFER.
The association pointed out that electricity prices remain around twice the level required by European industry
