The European Steel Association (EUROFER) has stated that Europe-made low-carbon steel, which has a strategic role in the net-zero economy, faces strong headwinds from high energy prices, unfair competition, global overcapacity and growing carbon costs. European crude steel production in 2023 was recorded at the lowest levels ever amid a number of idled plants. EUROFER noted that ensuring the enabling conditions for the short-term viability and the decarbonization of the steel sector urgently needs to be at the top of the EU agenda.
Axel Eggert, director general of the EUROFER, stated that the EU and its member states have launched a number of initiatives over the past few years to incentivize and support the European industrial transition towards carbon neutrality. Capital investment in about 60 low-carbon projects needs to amount to €31 billion and operational expenditures to €54 billion. However, the bottlenecks, including the lack of supply of internationally competitively priced low-carbon energy, and the highly CO2-intensive excess capacity in the global steel market, have not been solved. “We therefore urge policymakers to take swift action to preserve EU steel production during its decarbonization process,” Mr. Eggert, said.