News » A Green Deal on Steel video series - episode 3
A Green Deal on Steel video series - episode 3
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This is the third episode in EUROFER's Green Deal on Steel series: The pathways to low-carbon steelmaking.
Carbon-lean steelmaking relies on new ways of doing things. Current steelmaking technology is at its absolute limits. The ‘transition’ to low-carbon steel is actually a technological revolution.
The European steel industry has found two main ‘pathways’ that together could lead to 80-95% reductions in CO2 emissions from steel production by 2050. These pathways are reinforced by an overarching commitment to the circular economy through resource efficiency and the recycling of steel.
The technological pathways are Smart Carbon Usage and Carbon Direct Avoidance.
Smart Carbon Usage seeks to reintegrate so-called ‘process gases’ into the production process or to use carbon monoxide and dioxide as a raw material to make other, useful products.
Carbon Direct Avoidance includes hydrogen-based metallurgy and electricity-based reduction methods using green sources. In this framework, the Electric Arc Furnace route will be fundamental to strengthening the EU steel industry’s position in the circular economy.
If fully implemented, these pathways could change how we make steel in Europe.
Brussels, 10 September 2024 – The Draghi Report thoroughly identifies the bottlenecks to both the EU industry's decarbonisation and competitiveness. The proposed recommendations for energy-intensive industries, including on energy, trade, carbon leakage, financing and lead markets, should be integrated into the upcoming Clean Industrial Deal and implemented with concrete measures as a matter of urgency. Alignment across different policies is crucial, and should be accompanied by sector-specific initiatives to enable the transition of each industry including steel, asks the European Steel Association.
Brussels, 05 September 2024 – The latest developments in the steel sector and across critical value chains are worrying signs of a steady deterioration, endangering the survival and the transition of steelmakers and their key manufacturing customers in Europe, such as automotive. A Clean Industrial Deal including swift and radical measures in EU industrial, energy and trade policies, is the last chance to ensure Europe’s prosperity and shield European industry from cheap imports driven by third countries’ unfair trade practices, overcapacity and lower climate ambition, urges the European Steel Association.
Brussels, 25 July 2024 – Major indicators in the European steel market show a steeper-than-expected downward trend, further impacting the outlook for this year and the next. Poor demand conditions, driven by ongoing factors such as high energy prices, persistent inflation, economic uncertainty and geopolitical tensions, are exacerbated by a manufacturing crisis affecting the largest steel-using sectors, including construction and automotive. According to EUROFER’s latest Economic and Steel Market Outlook, apparent steel consumption is further deteriorating. After a slump (-3.1%) in the first quarter of 2024, its rebound for the full year has been revised downwards (to +1.4% from +3.2%), as well as for 2025 (+4.1% from +5.6%). Similarly, output in steel-using sectors, after a decline in the first quarter (-1.9%), is projected to experience a deeper-than-expected recession (-1.6% from -1%). A recovery is anticipated only in 2025 (+2.3%). Steel imports continue to show historically high shares (27%).