EUROFER | Engage

The newsletter of the European Steel Association

EUROFER | Engage

The newsletter of the European Steel Assocation (EUROFER)

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Note from the Director General

Fit for 55 package signals step-change in EU climate policy

The EU Climate Law - recently endorsed by the EU institutions – sets the ambition to reduce emissions by 55% by 2030 compared to 1990 levels and to reach climate neutrality by 2050. This target makes the EU by far the most ambitious major region worldwide in the field of climate policy.

This specific target forms part of the wider European Green Deal, first presented by the Commission in December 2019. This set out a detailed vision to make Europe the first climate-neutral continent by 2050, safeguard biodiversity, establish a circular economy and eliminate pollution, while boosting the competitiveness of European industry and ensuring a just transition for the regions and workers affected.

That political ambition is now to be made whole in a raft of legislation set to formally emerge on 14 July 2021 in the form of the Fit for 55 package, including: the revision of the EU Emissions Trading System (ETS), a Carbon Border Adjustment Mechanism (CBAM), revision of the Energy Tax Directive (ETD), amendments to the Renewable Energy and Energy Efficiency Directives, as well as others on the reduction of methane emissions from the power sector, greenhouse emissions from land use and rules on passenger cars and alternative fuels.

The Fit for 55 package is one of the most significant - and largest - groups of measures the EU has ever released in one go.

The European steel industry supports the objectives of the European Green Deal – and thus understands and supports the rationale behind the Great Leap of the Fit for 55 package – as long as it proves to be a strategy for growth: with effective carbon leakage protection, support for low carbon technologies (through de-risking instruments like carbon contracts for difference), demand-side measures to create markets for green steel, and affordable, low-carbon energy,.

Our sector already had the ambition to reduce CO2 emissions by 30% by 2030 compared to 2018 levels (which is the same as -55% compared to 1990). This reduction can only be achieved if the large number of advanced decarbonisation projects led by European steel companies – over 100 across Europe – are covered by a robust and supportive EU framework.

With the new, more ambitious EU climate target and increasing carbon price, it is ever more essential to prevent carbon leakage effectively.

EUROFER will be working hard to ensure that the best possible framework is created out of Fit for 55, ensuring that European steel can continue to be competitive during its transition to the green and sustainable future.

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Latest updates from the European Steel Association

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The Net-Zero Industry Act (NZIA) aims to preserve the leadership of the Wind Energy sector by enhancing European manufacturing capacity for net-zero technologies (“to meet at least 40% of EU annual deployment needs by 2030”), addressing barriers to scaling up production in Europe....

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Brussels, 2 April 2025 - The latest data unveiled by the OECD in its meeting in Paris draw an extremely worrying picture, where global steel excess capacity is expected to grow from an estimated 602 million tonnes in 2024 to 721 million tonnes by 2027 – over five times the EU's steel production. The European steel industry - already severely hit by the spill-over effects of global overcapacity and the U.S. steel import tariffs - reiterates the crucial need for strict and effective EU post-safeguard measures to ensure its survival.
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"The trends illustrated by the OECD prove that the global steel overcapacity problem not only remains unsolved but it’s constantly and significantly worsening....

Press release: Steel and Metals Action Plan: Right diagnosis. Right direction. Now is the time to effectively implement the solutions to save European steel, says EUROFER

Brussels, 19 March 2025 – The Steel and Metals Action Plan, unveiled today by the European Commission, provides the right diagnosis to the existential challenges facing the European steel industry. Concrete measures need to follow swiftly to reverse the decline of the sector, re-establish a level playing field with global competitors, and incentivise investment and uptake of green steel in the market.
18 March 2025
“With today’s Steel and Metals Action Plan, the European Commission is sending a clear message: a strong European Union needs a strong European steel industry”, said Dr Henrik Adam, President of the European Steel Association (EUROFER)....
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Belgium

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Email: mail@eurofer.eu
Phone: +32 (0) 2 738 79 20