Press releases » EUROFER asks for an EU industrial policy that provides a strong business case for green investment in Europe
EUROFER asks for an EU industrial policy that provides a strong business case for green investment in Europe
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Brussels, 16 March 2023 – A successful EU industrial policy requires a value chain-based approach, with steel as an integral part of the Net-Zero Industry Act. To ensure that the EU remains competitive in the greatest transformation of the industry towards climate-neutrality, it is essential to adopt disruptive thinking and innovative measures to create a more attractive green investment environment whilst securing the EU’s strategic autonomy. The European Steel Association (EUROFER) details its comprehensive vision in a new policy paper covering all industrial policy fields relevant for a green, decarbonised and prospering European manufacturing industry, including energy and climate, environment and circularity, investment, trade, internal market and skills.
Axel Eggert, Director General of EUROFER, released the following statements:
On the Net-zero Industry Act
“Steel is essential for a climate-neutral economy. From renewables to electric vehicles, the clean-tech value chains are dependent on steel: more than 74 million tons of additional steel production will be required just for reaching the EU renewables targets. This is why we ask for a more encompassing EU industrial policy with a stronger value chain-based approach, putting steelmakers in a position of investing in green technologies whilst staying competitive at global level. While this package is a first step for some sectors, more should be done in light of massive global steel overcapacity endangering the EU’s green transition by pushing millions of tons of high CO2 footprint steel on open markets such as the EU. The EU-US Global Arrangement on Sustainable Steel and Aluminium, envisaged by Commission President Ursula von der Leyen and US President Joe Biden is a unique opportunity to enhance the decarbonisation of the global steel industry and push back unsustainable steel capacity built up around the world. The EU must not fail in concluding an effective arrangement with the US meeting the deadline of October 2023”.
On the Critical Raw Materials Package
“The steel sector - which is crucial for green, digital, space and defence applications – already now recycles millions of tonnes of ferrous scrap. With the transition to green steel, our scrap needs will drastically increase with shortages expected before 2030. This is why also scrap should be included in the list of critical raw materials, as well as all nickel products. Favouring only the nickel battery grade could impact the overall nickel availability, in particular for the stainless steel sector. The inclusion of manganese, on the contrary, is a little step forward”.
On the Hydrogen Bank
“The steel sector alone will need at least 2 million tonnes of hydrogen in the next few years for the transition. It is key that the new Hydrogen Bank prioritises supply and infrastructure development based on sectors’ emissions abatement potential, favouring hard-to-abate industries with the highest impact in reducing CO2 emissions”.
On the Industrial Emissions Directive
“We are disappointed by the fact that in the current Council text no provisions are foreseen for sectors undergoing deep industrial transformation. Moreover, despite the lack of a clear favourable relationship between social benefits and economic costs showed by the Commission assessment, there is only limited improvement in the scope for the processing of ferrous metals".
Lucia Sali, Spokesperson and Head of Communications, +32 2 738 79 35, (firstname.lastname@example.org)
About the European Steel Association (EUROFER)
EUROFER AISBL is located in Brussels and was founded in 1976. It represents the entirety of steel production in the European Union. EUROFER members are steel companies and national steel federations throughout the EU. The major steel companies and national steel federation of Turkey and the United Kingdom are associate members.
The European Steel Association is recorded in the EU transparency register: 93038071152-83.
About the European steel industry
The European steel industry is a world leader in innovation and environmental sustainability. It has a turnover of around €125 billion and directly employs around 310,000 highly-skilled people, producing on average 153 million tonnes of steel per year. More than 500 steel production sites across 22 EU Member States provide direct and indirect employment to millions more European citizens. Closely integrated with Europe’s manufacturing and construction industries, steel is the backbone for development, growth and employment in Europe.
Steel is the most versatile industrial material in the world. The thousands of different grades and types of steel developed by the industry make the modern world possible. Steel is 100% recyclable and therefore is a fundamental part of the circular economy. As a basic engineering material, steel is also an essential factor in the development and deployment of innovative, CO2-mitigating technologies, improving resource efficiency and fostering sustainable development in Europe.
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New global reality requires disruptive thinking and innovative measures
Brussels, 14 March 2023 – The revision of the Electricity Market Design (EMD) risks becoming another missed opportunity to secure cost-competitive fossil-free electricity and to introduce solutions providing swift relief to energy-intensive sectors exposed to global competition. It remains unclear how industrial energy consumers will be able to access the large quantities of renewable and low-carbon electricity needed for their decarbonisation in the coming years, says the European Steel Association following the publication of the European Commission’s reform proposal on the EMD.
Brussels, 09 February 2023 – Hydrogen is at the core of the green steel transition. Ensuring access to this scarce resource – with a share of a bare 2% in today’ EU energy mix – will be paramount in the upcoming years to enable carbon-neutral steelmaking in practice. The reports adopted today by the European Parliament’s Industry, Research and Energy Committee (ITRE) represent a significant step towards industrial decarbonisation, as they acknowledge the importance of prioritising hydrogen access for sectors that have the greatest potential for emissions reduction and the largest impact on climate mitigation, says the European Steel Association (EUROFER).