The European Steel Association (EUROFER) has welcomed a compromise among three political groups in the European Parliament on emissions rules for cars and vans. The proposal would give automakers an incentive to use low-carbon steel produced in the EU.
Under the agreement between the European People’s Party, the Socialists and Democrats, and Renew Europe, vehicle emissions would have to fall by 87.5% by 2035 from 2021 levels. The use of qualifying EU-produced low-carbon steel could count for up to an additional 7.5 percentage points towards meeting the targets.
EUROFER says the measure would create demand for low-carbon steel and support the decarbonisation of Europe’s steel and automotive industries. More than 60 low-carbon steel projects are planned or under way across Europe. By 2030, they could add over 20 million tonnes of capacity for automotive steel—enough, the association says, to supply all vehicles registered annually in the EU.
EUROFER Director General Axel Eggert stressed the need to build a market for low-carbon steel as European producers invest in cutting emissions. Steel makes up about 800 kg, or 40–50%, of a vehicle’s weight. Iron and steel production accounts for an estimated 16–27% of emissions associated with vehicle manufacturing, according to the association.
EUROFER wants the credit to be reserved for low-carbon steel rather than extended to other materials. It also backed a “Made in the EU” requirement: only steel melted and poured in the EU would qualify. The association says this would ensure the incentive supports steelmaking in Europe.
The European Parliament is expected to vote on the proposal later in 2026, before talks with the European Commission and the Council of the EU. EUROFER has called for both the dedicated steel credit and the EU-origin requirement to remain in the final agreement.
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