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Consultation on 2030 climate and energy policy
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The Commission’s Strategic Vision “A Clean Planet for all” indicates that deep CO2 emissions reductions in the steel sector are possible through a combination of technological pathways, including steel recycling, carbon capture utilisation and storage, process integration, and electricity/hydrogen-based metallurgy. At the same time, the Commission document confirms that the steel sector is themost exposed to carbon leakage among all energy intensive industries, both in terms of possible impact on output and on investment.
The transformation of the steel industry will require significant investment in the technologies required to decarbonise while the sector needs to remain competitive throughout the entire transition and beyond. External factors not directly controlled by the industry will play a crucial role, most importantly access to CO2-low energy/electricity and feedstock, as well as CO2 storage capacity, where available, at affordable prices. Considering the additional time required for technology uptake and deployment, it is essential that the most promising breakthrough technologies are tested and implemented at industrial scale as soon as possible in the coming decade.
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Brussels, 02 July 2025 – The 90% climate target proposed today by the European Commission demands an unprecedented transformation of EU society and industry in just 15 years. The European steel industry is already doing its part, but a viable business case for the transition is still lacking. To enable it, the EU needs to implement the Steel and Metals Action Plan much more decisively, delivering a highly effective trade protection against global overcapacity, access to internationally competitive low carbon energy and scrap, and a watertight CBAM, says the European Steel Association.
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