(Duisburg, Germany) – Three steel companies are calling for a “pragmatic reform” of the EU Emissions Trading System (ETS) to safeguard the competitiveness of the European steel industry and advance decarbonization. The call is supported by Luxembourg-based ArcelorMittal Europe SA, the European arm of the Indian and world's second-largest steel producer ArcelorMittal, Thyssenkrupp Steel Europe AG, and Austria's Voestalpine AG. Together, the three companies account for approximately 60 percent of integrated steel production in Europe, according to their own figures.
Current course could destroy industry
The companies warn that "the current political course, without adjustments, could destroy Europe's industrial base." The decarbonization of factories and changes in the steel production process must be enabled, not hindered. While the existing EU Emissions Trading System (ETS) led to emission reductions of approximately 49 percent in the energy sector between 2005 and 2023, it "does not offer a viable path forward for energy-intensive industries like the steel industry."
Key prerequisites for economic decarbonization are “still insufficiently developed or not available on a large scale”, including competitive electricity prices, affordable green hydrogen, CO2 difference contracts, CO2 capture and storage, and lead markets for low-carbon steel.
Under the current framework of the emissions trading system, the costs of steel production in the EU are expected to rise by around 50 percent by the early 2030s. Without reforms, a decline in steel-intensive manufacturing activity of 30 to 40 percent is anticipated, putting up to five million jobs at risk along the entire value chain.
Photo above
Continuous casting plant of the hot strip mill 4 in Duisburg, which will be comprehensively modernized in 2025, featuring two new walking beam furnaces and fully automated slab logistics at Tyssenkrupp Steel. © Tyssenkrupp Steel AG
