EUROFER Highlights Challenges to EU Steel Industry Decarbonisation

SEATTLE (Scrap Monster): The ambitious decarbonisation plans by the region’s steel industry faces threat from continued prohibitive energy prices and skyrocketing carbon prices, warned the European Steel Association (EUROFER). The Association called for immediate action by EU leaders to make sure that climate goals are met in a cost-effective manner.

The key European industries, including steel will be unable to bear all the energy and climate costs of today. The rates are likely to sustain, unless policymakers act swiftly to take right decisions. A sustainable transition is required for the EU to attain the decarbonisation target of 55% emissions cut by 2030. The non-occurrence of a sustainable transition would result in flooding of cheap imported steel, especially from third countries such as China, Russia and Indonesia, said Axel Eggert, Director General, EUROFER.

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The association highlighted that gas and electricity prices have risen exponentially, recording up to five-fold jump over the previous year. Also, carbon prices too have spiked up to 80-90 euros. The unprecedented crisis in the energy markets requires urgent initiatives from the EU leaders, it said.

EUROFER estimates the additional direct carbon costs for the steel industry at nearly 14 billion euros in 2030.