Publications » Position papers » Creating markets for low CO2 materials: Sector coupling via lifecycle CO2-credits for the use of low-CO2 steel as 'eco-innovations' in the automotive industry
Creating markets for low CO2 materials: Sector coupling via lifecycle CO2-credits for the use of low-CO2 steel as 'eco-innovations' in the automotive industry
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The European Green Deal emphasizes the will of the European Union to become the first climate neutral continent by 2050. Important decisions have to be taken very soon for the phase until 2030 for the deployment of the first low-carbon breakthrough technologies on industrial scale, especially in energy-intensive sectors.
The steel industry as well as other basic materials industries need to go through a major transformation process to meet the EU climate objectives. Fulfilling the targets is challenging but technically possible, e.g. via hydrogen-based steelmaking, carbon capture and utilisation/storage, process integration, and utilisation of steel recycling within the limits of scrap availability.
However, despite the high CO2 reduction potential, companies still face huge barriers in terms of commercialisation. Estimations show that the production costs of low-carbon breakthrough technologies will increase significantly under the current political framework, making it impossible for domestic companies to compete on the world market against companies which do not have to undergo climate-related transformational processes.
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Brussels, 6 May 2026 - Europe’s steel industry has warned that the EU’s proposed Industrial Accelerator Act (IAA) risks undermining its industrial and climate ambitions, unless it ensures that demand for low-carbon steel prioritises production within the EU.
EUROFER strongly supports the Act’s objective of creating lead markets for low-carbon steel as a critical tool to unlock the massive investments needed for the green transition of the European steel industry and facilitate the market uptake of low-carbon steel.
The signatories call on the European Parliament and Council to ensure an effective and broad extension of the CBAM to relevant steel and aluminium intensive downstream industries.