Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The European Steel Association (Eurofer) has called on the European Commission to implement concrete ecological measures to support decarbonization while ensuring economic growth and competitiveness of the steel industry. 


Referencing the ongoing Green Deal on Steel parameters it has set forth to guide the process, Eurofer warned the EU commission that reaching the new emissions reductions goal would pose a significant investment challenge for the European steel industry, especially without the right policy infrastructure. The European Commission revised its carbon emission reduction target up to 55pc by 2030 against 1990 basis. 


Axel Eggert, director-general of Eurofer indicated that the 55pc reduction goal against the 1990-basis correlated with a 30pc emissions reduction by 2030 compared to 2018-basis. Eggert noted that a framework designed to support emissions goals and business competitiveness is a matter of urgency. 


Eurofer’s suggestions include support for investment in innovation and roll-out, creation of a green materials market, affordable renewable energy sources, fair trading practices, and effective application of the EU trade defense apparatus. Eggert also encouraged the commission to consider carbon leakage and an effective border adjustment mechanism in the absence of comparable efforts by trading partners. 


Eurofer sees the need for a stable and predictable policy framework that supports the steel industry while achieving climate objectives. Eggert expressed concern by the Commissions’ proposals to increase the reduction factor of the EU ETS as well as the cancellation of allowances. The rationale is the exposure by the steel sector to higher carbon costs in contradiction to the low-carbon investments needed. 

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