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Ecodesign for Sustainable Products Regulation
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The steel industry welcomes the release of the recently proposed Ecodesign for Sustainable Products Regulation (ESPR) by the European Commission. The European Union needs strong legislation to achieve its ambitious objectives set in the Green Deal and Circular Economy Action Plan, which can improve its competitiveness on global markets and set an example to other economies. The success of this general framework legislation relies on numerous related delegated and implementing acts to be released, the revision of already existing ones and their mutual coherence. It will extend the scope to a wider range of products to strengthen the circularity criteria, to introduce new information requirements for products and to provide more sustainable information alongside sustainable products for customers on the European market. Living up to this ambition will require a sustained, coherent and forward-looking thrust from the European Commission. The European steel industry is ready to assist in that challenge.
Key areas are: harmonisation, requirements, digital product passport and substances of concern.
In conclusion, the European Commission proposal is an important but also challenging starting point towards the transition to the circular economy, which is a key contributor for achieving climate neutrality targets. However, its effectiveness will greatly rely on the new requirements with appropriate relevance for products levels in delegated acts and overall coherence of related legislation. Driving the transition to more sustainable products requires also the creation of lead markets, as well as incentivising them to keep the pace and motivate others, whilst harnessing the current potential from industry. The steel sector is looking forward to cooperating with the European Parliament and the European Council for enhancing the current text.
The full text of the position paper on the Ecodesign for Sustainable Products Regulation is available below.
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Brussels, 10 September 2024 – The Draghi Report thoroughly identifies the bottlenecks to both the EU industry's decarbonisation and competitiveness. The proposed recommendations for energy-intensive industries, including on energy, trade, carbon leakage, financing and lead markets, should be integrated into the upcoming Clean Industrial Deal and implemented with concrete measures as a matter of urgency. Alignment across different policies is crucial, and should be accompanied by sector-specific initiatives to enable the transition of each industry including steel, asks the European Steel Association.
Brussels, 05 September 2024 – The latest developments in the steel sector and across critical value chains are worrying signs of a steady deterioration, endangering the survival and the transition of steelmakers and their key manufacturing customers in Europe, such as automotive. A Clean Industrial Deal including swift and radical measures in EU industrial, energy and trade policies, is the last chance to ensure Europe’s prosperity and shield European industry from cheap imports driven by third countries’ unfair trade practices, overcapacity and lower climate ambition, urges the European Steel Association.
Brussels, 25 July 2024 – Major indicators in the European steel market show a steeper-than-expected downward trend, further impacting the outlook for this year and the next. Poor demand conditions, driven by ongoing factors such as high energy prices, persistent inflation, economic uncertainty and geopolitical tensions, are exacerbated by a manufacturing crisis affecting the largest steel-using sectors, including construction and automotive. According to EUROFER’s latest Economic and Steel Market Outlook, apparent steel consumption is further deteriorating. After a slump (-3.1%) in the first quarter of 2024, its rebound for the full year has been revised downwards (to +1.4% from +3.2%), as well as for 2025 (+4.1% from +5.6%). Similarly, output in steel-using sectors, after a decline in the first quarter (-1.9%), is projected to experience a deeper-than-expected recession (-1.6% from -1%). A recovery is anticipated only in 2025 (+2.3%). Steel imports continue to show historically high shares (27%).