Spain’s steel producers’ association UNESID has called for higher compensation for indirect carbon costs. The proposed allocation for 2026 is €157 million, €43 million short of what the sector needs, local media report.
UNESID estimates that steelmakers require €200 million to cover the cost of carbon allowances passed through electricity prices. The association warns that insufficient support puts Spanish producers at a disadvantage against European competitors and complicates decisions on production and investment.
The association provisionally estimates the sector’s additional energy costs at €658 million from March to December 2026. Producers also face charges for balancing the electricity system; some plants have suspended operations during peak-price hours.
UNESID also called for predictable compensation funding in future years and permanent cuts to electricity network charges for energy-intensive consumers. It said stable energy conditions are essential to maintaining industrial activity and investment in Spain.
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