On 19 March, the European Commission introduced an Action Plan to strengthen the steel and metals sectors, which are critical for the European economy and key industries like automotive and clean technology. This initiative addresses challenges such as high energy costs, unfair global competition, and the need for investments to reduce greenhouse gas emissions.
Key components of the Action Plan include affordable and secure energy supply, preventing carbon leakage, protecting industrial capacities, promoting circularity, de-risking decarbonisation and protecting jobs.
Commission President Ursula von der Leyen said: “The steel industry has always been a core engine for European prosperity. Next-generation, clean steel should therefore continue to be manufactured in Europe. That means we have to help our steelmakers who are facing strong headwinds on the global market. To make sure they remain competitive, we must reduce energy costs and help them introduce innovative, low-carbon technologies to the market. With today’s Action Plan, we are offering concrete solutions for a thriving European steel industry.”
The Plan promotes Power Purchase Agreements (PPAs) and urges Member States to utilise energy tax flexibility and reduced tariffs. It also advocates for faster grid access for energy-intensive industries and encourages the use of renewable hydrogen.
The Carbon Border Adjustment Mechanism (CBAM) will ensure fair competition and prevent non-EU industries from falsely marketing their products as low-carbon. The Commission will communicate on carbon leakage and review CBAM by the end of 2025, expanding its scope to certain downstream products. The Commission will tighten existing steel safeguards due to global overcapacity threats and propose new long-term measures before the current safeguard expires mid-2026. Additionally, measures like the “melted and poured rule” will help determine the origin of metal goods.
The Plan will set recycling targets for steel and aluminium, assess recycling requirements for additional products, and consider trade measures on metal scrap to ensure a steady supply.
The upcoming Industrial Decarbonisation Accelerator Act will set sustainability criteria for public procurement, increasing demand for EU-produced low-carbon metals. The Commission aims to allocate €150 million through the Research Fund for Coal and Steel, with a total of €100 billion targeted from various sources for industrial decarbonisation efforts.
“The European Steel and Metals Action Plan will protect our industry from unfair commercial practices, consolidate our decarbonisation strategy and boost domestic demand for low-carbon industrial products. We owe this to all European economic sectors that rely on a strong EU steel and metals industry, to all the workers in our steel plants and to our next generations that will inherit a European Union with an independent and prosperous industry. There can be no reindustrialisation, and no European path to climate neutrality without a resilient steel and metals industrial base within the borders of the EU,” Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy, said.
The steel and metals sector employs nearly 2.6 million people in the EU. The Action Plan includes policies to support skill development and ensure fair transitions for workers.
This comprehensive approach aims to enhance competitiveness and secure the future of Europe’s steel and metals industries.
