The European Commission published, on 21 September 2020, its revision of the EU ETS State Aid guidelines for the compensation of indirect carbon costs for the period 2021-2030. These revised guidelines are designed to support sectors that, like steel, are most at risk of carbon leakage.
The publication follows the recent Commission’s proposal on increasing the 2030 climate targets. In the absence of comparable efforts by trading partners, it is important to develop a strengthened framework of measures to address the risk of carbon leakage, with benchmark-based free allocation and indirect costs compensation, as well as an effective carbon border adjustment mechanism
Compensation for indirect costs incurred by the steel industry is an essential measure to mitigate the risk of carbon leakage due to the carbon costs passed on to the steel sector from the energy sector.
EUROFER has the following overall perspective on the revision:
The European steel sector is committed to emissions reduction, and compensation for indirect carbon costs forms an essential part of the policy framework necessary to ensure that the sector can continue to decarbonise whilst remaining globally competitive.
Antwerp, 20 February 2024 – Today 73 industry leaders spanning almost 20 industrial sectors presented ‘The Antwerp Declaration for a European Industrial Deal’ to Belgian Prime Minister, Alexander De Croo and Commission President, Ursula von der Leyen. The declaration underlines the commitment of industry to Europe and its transformation and outlines urgent industry needs to make Europe competitive, resilient, and sustainable in the face of dire economic conditions.
European Industry Summit: a business case for Europe, under the auspices of the Belgian Presidency of the Council of the EU - There is an urgent need for clarity, predictability, and confidence in Europe and its industrial policy
Brussels, 09 February 2024 – The initiation of a new steel safeguard investigation announced today by the European Commission is a pivotal step that could ensure the continuation of current measures beyond June 2024. This welcome move comes in response to worsening challenges in the global steel market, where carbon-intensive steel imports originating from excess capacity are inundating the EU market, posing a risk to the sustainability of the European steel industry, says the European Steel Association.