A new report out now, “The state of the European steel transition” highlights the crossroads at which the EU finds itself: It can double down on outdated coal-based steelmaking, or drive a shift to green steel to secure industrial competitiveness.
This research provides eight key policy recommendations designed to clean up Europe’s steel sector, which accounts for five percent of the EU’s total carbon emissions, including:
- EU Member States need to commit to not permitting or financing any new BF-BOF and end public investments to reline existing ones. A framework needs to be developed that guarantees a transformation of the steel sector in Europe in line with a 1.5ºC scenario.
- Policymakers should adopt a standard for near zero emissions steel production as well as create an enabling environment for lead markets for steel using recycling and scrap targets.
- The European Commission and Member States should align public procurement with climate protection and zero pollution goals to develop green lead markets.
Steel buyers and users also have a critical role to play in driving change. Leading businesses from across Europe have joined our SteelZero initiative, including Maersk, Volvo Cars, Siemens Gamesa, and Ørsted.
We need more companies to step up by committing to procurement agreements and offtake deals. This is essential to create a stable market for net zero emission steel.
“The private sector has a critical role to play in scaling up the demand for green steel. Sectors such as construction, automotive, and manufacturing must commit to buying low emission steel to create a viable market for sustainable production.
Carmakers, in particular, have a major role to play as steel accounts for a substantial portion of vehicle manufacturing emissions. Despite progress from industry leaders, we need to see more carmakers and steel buyers stepping up to make meaningful pledges to support the transition.”
Jen Carson, Head of Heavy Industry of Climate Group