The European steel industry is the most advanced of its kind in the world. As it is, Europe leads the way in environmental and climate performance. CO2 emissions and energy use in European steel production have been halved since 1960, and the sector has the ambition to further achieve cuts of between 80-95% by 2050, compared to 1990 levels.
This transition will require significant investment in new technological development and deployment, in energy infrastructure, consumption and type, and will require access to high quality materials, such as iron ore and scrap.
EUROFER has established a clear set of pathway scenarios that will deliver this essential change for the sector, ensuring that Europe will remain on track to fulfil its Paris Climate Accords requirements, whilst also making European steel fit for a clean, low-carbon future.
To reach the emissions reduction targets, it is important to act now. Given the asset-intensity of the steel industry, the implementation of low-carbon technologies (including engineering, permitting, construction) is time-intensive. Investment decisions taken today will only take effect in 10 or more years.
The steel sector is willing to undergo the required transformation, but this cannot be done in isolation. Instead, it should be done in cooperation with governments, the energy sector and other industries. The deep transformation of the steel sector requires concerted effort and support.
Brussels, 26 May 2020 – The European Commission will tomorrow, following the request by the European Council, present its EU Recovery Plan to support a climate-neutral, digitalised and resilient EU economy, helping to rebuild after the COVID-19 pandemic.
This paper clarifies the reasons why it is appropriate from environmental, economic and legal perspectives to implement initially a carbon border measure as a complementary provision in addition to the existing carbon leakage measures.
Priorities to transition the EU to carbon-neutrality and circularity