Europe: EUROFER calls for concrete solution to steel exports within ETS

The Association of European Steel Producers (EUROFER) is calling for a concrete solution to steel exports within the Emissions Trading System (ETS), as per the company statement released on its website.

It is to be noted that the EU agreed to revise the ETS after the previous agreement on carbon border adjustment mechanism (CBAM). The agreement provides that emissions (in particular, emissions of CO2) in sectors that are covered by the ETS should be reduced by 62% by 2030 compared to 2005. One of the provisions of the agreement is the gradual cancellations of free quotas for greenhouse gas emissions for energy-intensive industries, particularly for steel and aluminium production, over nine years i.e., from 2026 to 2034.

The association notes that although the ETS revision provides some incentives for the introduction of new technologies to decarbonise the industry, the pre-determined scheme of the gradual abolition of free quotas for carbon emissions carries the risk of losing Euro 45 billion worth of steel exports from the country.

Thus, EUROFER has raised its concern and is asking for a concrete solution regarding the regulation of carbon emissions in relation to the exports markets.

Maintaining the competitiveness of EU industry in both domestic and export markets, implementing urgent measures to stimulate investment in clean technologies and the availability of electricity and hydrogen will be crucial to prevent deindustrialisation, according to EUROFER.

The European steel sector has launched several projects to reduce its emissions by 55% by 2030 and become carbon neutral by 2050. The industry is keen to play its part in successful decarbonisation, but the enabling financial, energy and regulatory environment needs to be put in place as soon as possible. This becomes even more urgent against the backdrop of the energy crisis in the EU and measures to promote its industry in third countries, particularly USA, the association notes.

~GMK Center