Publications » Position papers » Creating markets for low CO2 materials: Sector coupling via lifecycle CO2-credits for the use of low-CO2 steel as 'eco-innovations' in the automotive industry
Creating markets for low CO2 materials: Sector coupling via lifecycle CO2-credits for the use of low-CO2 steel as 'eco-innovations' in the automotive industry
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The European Green Deal emphasizes the will of the European Union to become the first climate neutral continent by 2050. Important decisions have to be taken very soon for the phase until 2030 for the deployment of the first low-carbon breakthrough technologies on industrial scale, especially in energy-intensive sectors.
The steel industry as well as other basic materials industries need to go through a major transformation process to meet the EU climate objectives. Fulfilling the targets is challenging but technically possible, e.g. via hydrogen-based steelmaking, carbon capture and utilisation/storage, process integration, and utilisation of steel recycling within the limits of scrap availability.
However, despite the high CO2 reduction potential, companies still face huge barriers in terms of commercialisation. Estimations show that the production costs of low-carbon breakthrough technologies will increase significantly under the current political framework, making it impossible for domestic companies to compete on the world market against companies which do not have to undergo climate-related transformational processes.
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Brussels, 12 June 2026 - Europe's steel industry has noted improvements made by EU ministers to the proposed reform of the Carbon Border Adjustment Mechanism (CBAM), but warns loopholes remain that could weaken both Europe's climate ambitions and industrial competitiveness.
EUROFER’s Annual Report 2026 sets out the key economic trends, policy developments and challenges shaping the future of the European steel industry today.
Brussels, 4 June 2026: One year after the United States imposed 50% tariffs on steel imports, European steel exports to the U.S. are down by one-third according to latest figures by the European Steel Association (EUROFER).