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State of the European Union address 2020
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Her speech to the European Parliament touched on a number of policy issues relevant to the European Steel Association (EUROFER). Most notably, these include the raised 55% target for emissions reductions by 2030. As a sector in an advanced state of preparation to reduce emissions, EUROFER sees the target as needing the necessary framework in place to ensure success.
One of the elements of this framework is on the decisive and firm enforcement of trade defence rules. The EU recently modernised its Trade Defence Instruments (TDI), but still needs to be effective in their deployment. While the President touched on WTO reform in her speech, the EU needs to be proactive in seeking out and countering trade distortions that unfairly impact the jobs and prosperity of European citizens.
The Carbon Border Adjustment Mechanism (CBAM) was also addressed by the President. The CBAM aims to balance the concerns of industry about losing competitiveness compared to competitors in third markets who do not face the same carbon cost constraints as European industrial players, versus the ability of European companies to invest in reducing their emissions. Doing so is a matter of urgency, but the parameters of the CBAM must ensure the competitiveness of European industry, including steel, both at home and abroad.
Mrs von der Leyen also addressed a key technology in the push towards green steel, with welcome words on creating ‘hydrogen valleys’. Hydrogen-based steel production, which she mentioned in her speech, is a part of one of EUROFER’s green pathways: carbon direct avoidance. It is a positive step that a project of such importance is mentioned, and it serves as a fine example of the work the European steel industry is doing to help meet its own ambition of a 30% reduction in CO2 emissions by 2030 compared to 2018 (55% compared to 1990) and onwards to 80-95% by 2050, under the right conditions.
Finally, with the corona crisis having struck a severe blow to the European steel sector – with production down by half and 40% of the workforce laid off or on short working at the peak of the crisis in early-to-mid 2020, there is a need for an economic boost. The Next Generation EU recovery plan is a positive start, but EUROFER warns that we must relaunch as soon as possible to be able to ensure a recovery gains pace – giving the sector (and European industry more generally) the ability to advance towards the green future.
Brussels, 22 March 2024 – The future of a strong and resilient EU can only be forged with steel made in Europe. Europe-made low-carbon steel has a strategic role as it enables a net-zero economy, but today it faces strong headwinds from high energy prices, unfair competition, global overcapacity and growing unilateral carbon costs. The year 2023 has recorded the lowest European crude steel production levels ever, with a number of idled plants and dire impact on workers. Ensuring the enabling conditions for the short-term viability and the decarbonisation of the steel sector urgently needs to be at the top of the EU agenda. This is the message delivered by the European Steel Association together with a number of high-level representatives of the sector on the occasion of the Clean Transition Dialogue on Steel in the presence of the Executive Vice Presidents of the European Commission, Maroš Šefčovič and Margrethe Vestager.
Uses, limits, and realistic potentials of demand-side response from the European steel industry along with a broad set of framework recommendations for an EU policy
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.