ArcelorMittal Europe, Thyssenkrupp Steel and Voestalpine have jointly called for urgent reforms to the European Union’s Emissions Trading System (ETS), warning that the current framework risks undermining the competitiveness of Europe’s steel industry.
The three steelmakers, which together account for around 60pct of Europe’s integrated steel production, said rising carbon costs are increasing pressure on energy-intensive industries while key decarbonization enablers, including affordable green hydrogen, competitive electricity prices, carbon capture solutions and lead markets for low-carbon steel, remain insufficiently developed.
According to the companies, the current ETS framework could increase steel production costs in the EU by around 50pct by the early 2030s. They warned that, without reform, Europe could face a 30-40pct decline in steel-intensive manufacturing activity, putting up to five mln jobs across the value chain at risk.
The steelmakers called for a temporary pause in ETS cost escalation until the necessary conditions for economically viable decarbonization are in place. They also urged policymakers to direct ETS revenues toward industrial decarbonization projects and address competitiveness issues affecting both imports and exports.
The companies said they remain committed to their decarbonization targets but stressed that the regulatory framework must support, rather than hinder, investment in low-carbon steelmaking technologies.
The statement comes as the EU continues to implement measures including the Carbon Border Adjustment Mechanism (CBAM) and upcoming tariff-rate quotas aimed at strengthening the competitiveness of European industry while advancing climate objectives.