The European Commission (EC) has launched its final version of the Steel and Metals Action Plan, aimed at enhancing the competitiveness of the steel and metals industry while addressing challenges such as high energy costs, unfair global competition, and the need to reduce emissions. The plan recognizes the steel industry as the foundation of Europe’s economy, crucial for sectors like automotive, clean tech, and defense. Strengthening this industry is also seen as vital for geopolitical security amid global uncertainties.
The plan outlines several measures to alleviate pressures on the steel sector, including easing access to affordable energy. This will be achieved through reducing network charges and energy taxes, facilitating power purchase agreements, expediting permissions, expanding and modernizing grids, and introducing tax flexibility to tackle electricity price volatility. The plan also proposes faster grid access for energy-intensive industries and increased support for renewable and low-carbon hydrogen use.
To ensure fair competition, the EC will strengthen the Carbon Border Adjustment Mechanism (CBAM). While CBAM targets import goods, it does not yet address carbon leakage risks for EU-produced goods exported to third countries. The EC plans to offer solutions for this and extend CBAM to certain downstream products, alongside implementing anti-circumvention measures.
Addressing global steel overcapacity, which threatens the profitability and competitiveness of the sector, the EC intends to tighten safeguard measures and introduce a new long-term solution before the expiration of current measures in June 2026. The EC will also evaluate the “melted and poured rule” to track the origin of steel and metals.
In addition, the EC is focused on improving recycling to promote circularity in the steel and metals industries. It plans to set targets for recycled steel and aluminum use, especially in key industries, and will assess the potential for recyclability requirements for other sectors like construction and electronics. The Commission is also considering trade measures on metal scrap to ensure the availability of materials necessary for low-carbon steel production.
To safeguard the workforce, the EC aims to protect about 2.6 million jobs in the steel and metals industry through active labor policies that secure workers' rights.
Dr. Henrik Adam, President of the European Steel Association (EUROFER), praised the plan, urging immediate concrete actions to reverse the downturn in the industry. While he welcomed the proposed measures, he emphasized that high energy prices remain the primary challenge, not just for the steel sector but for entire industrial value chains. Adam stressed the need for further efforts to reduce energy costs to ensure the sector’s sustainability.
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