Eurofer claims climate regs will aid 'dirty' steel imports

European steel-makers have warned that efforts to decarbonise the industry are threatened by prohibitive energy prices coupled with ‘skyrocketing’ carbon

What happened

The warning from the European Steel Association (Eurofer) coincides with a meeting of the European Council and ahead of the Environment Council next week. ‘Key European industries such as steel cannot bear all the energy and climate costs that we experience today and are likely to face also in the coming years if policymakers do not take the right decisions now,’ says Eurofer director general Axel Eggert.

Why it matters

‘The EU needs to pursue its decarbonisation target of a 55% emissions cut by 2030 through a sustainable transition that allows the industry to invest and secure a living for its workforce and the millions of households dependent on it,’ he states. ‘If the transition is not sustainable, we risk the European market being flooded by ‘dirty’ cheap steel from third countries such as China, Russia or Indonesia’.

Eurofer says energy-intensive companies already exposed to price spikes have been forced to react by reducing production or temporarily closing plants. Gas and electricity prices have been rising exponentially, it complains, registering up to fivefold increases in comparison with last year. In parallel, carbon price spikes up to EUR 80-90 are having an increasing impact on electricity prices.

‘While this unprecedented crisis in the energy markets requires additional urgent initiatives, EU leaders also need to take into account the implications of the upcoming climate legislation, in particular the Carbon Border Adjustment Mechanism (CBAM) and the revision of the EU ETS,’ Eggert adds.

This news brief is based on reporting published by Recycling International on 2021-12-21. The original report is linked below.