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, 13 February 2025 – Following the high-level conference “A Carbon Border Adjustment Mechanism for Climate - Addressing carbon leakage to strengthen global climate action”, organised in Paris by the European Commission and the French Ministries of Finance, Economics and Climate Transition, EUROFER emphasises that simplification must go hand in hand with ensuring the instrument’s effectiveness. This means addressing key issues such as resource shuffling, exports, and the inclusions of products further down the value chain.
Brussels, 11 February 2025
Brussels, 06 February 2025 – The economic and geopolitical conditions that have affected the European steel market over the past two years show no signs of improvement and have further deepened their negative impact on the sector in 2024. Growing uncertainty continues to weigh also on 2025 and 2026, with the outlook hinging on unpredictable developments especially as regards international trade. According to EUROFER’s latest Economic and Steel Market Outlook, the recession in apparent steel consumption in 2024 will be steeper than previously projected (-2.3%, down from -1.8%) and the expected recovery in 2025 has now been downgraded (+2.2%, down from +3.8%). Similarly, steel-using sectors’ recession has been revised downwards for 2024 (-3.3% from -2.7%), while growth projections for 2025 have also been lowered (+0,9% from +1.6%). Some acceleration is not expected until 2026 (+2.1%). Steel imports remain at historically high levels (28%) also in the third quarter of 2024.