EU environmental project could force steelmakers to move to countries with less stringent requirements

The European Steel Association EUROFER explains that the project of the Environmental Commission could undermine their competitiveness. Gordon Moffat, head of EUROFER, and Bart Samine, deputy general secretary of IndustriALL Europe, asked José Manuel Barroso to develop measures to prevent potential carbon leakage by ensuring that

Europe competitiveness of energy-intensive industries, and especially to make efforts to protect employment in the European steel industry.
The project obliges EU member states to reduce industrial emissions by limiting surcharges. There is no reasonable rationale for limiting surcharges to 80 percent as the root of decarbonization, does not rule out emissions. The point is that businesses outside the EU should not have to bear such costs. Thus, there is a risk that companies may relocate their production outside Europe due to rising costs.

The clear position of the European steel industry aims to strengthen the employment protection and competitiveness of the European steel industry. Environmental Security and Energy Assistance Principles for 2014 to 2020, EEAG, are the most pressing issue for energy intensive industries. Energy costs are a major factor in global competitiveness and investment decisions in industry.

High energy costs will drive investment out of Europe and, as a consequence, increase carbon emissions. Carbon leakage will occur in other countries with less stringent climate policies. The current project is insufficient to meet the objectives set out in the environmental project, according to an address to the President of the European Commission.