ArcelorMittal, thyssenkrupp Steel and voestalpine urge ETS reform to protect EU steelmaking
- The three firms represent about 60% of Europe’s integrated steel production.
- EU ETS helped cut power-sector emissions by ~49% between 2005 and 2023, but lacks a viable pathway for steel.
- Under the current ETS framework, EU steel production costs are expected to rise by around 50% by the early 2030s.
- Without ETS reform the EU could see a 30–40% decline in steel‑intensive manufacturing and up to 5 million jobs at risk.
Joint appeal
ArcelorMittal, thyssenkrupp Steel and voestalpine — together accounting for roughly 60% of Europe’s integrated steel output — have issued a joint call for pragmatic reform of the EU Emissions Trading System (ETS), arguing the current trajectory threatens the competitiveness of European steelmaking and its downstream industries. The companies set out their position in an article in the Financial Times.
Why reform is needed
They acknowledge the ETS drove substantial emissions cuts in power (about 49% lower between 2005 and 2023) but say it does not yet provide a viable economic pathway for energy‑intensive sectors. Key enablers for industrial decarbonisation remain insufficient or unavailable at scale, including competitive electricity, affordable green hydrogen, Carbon Contracts for Difference, carbon capture and storage, and lead markets for low‑carbon steel.
Impacts and proposed fixes
The companies warn ETS costs could push EU steel production costs up ~50% by the early 2030s, while imports face lower carbon costs and exports receive no carbon rebate. They estimate a 30–40% fall in steel‑intensive manufacturing and up to 5 million jobs at risk without reform. Their asks: a temporary pause in ETS cost escalation until enablers are in place; financial and policy support for first movers, directing ETS revenues to industrial decarbonisation; and measures to balance import/export competitiveness. They note CBAM and forthcoming tariff rate quotas help, but say ETS reform is the final piece to reconcile decarbonisation with industrial resilience.
Source: thyssenkrupp Steel Europe