Here are some more comments from the EU steel lobbyist Eurofer regarding the steel-related aspects of the Industrial Accelerator Act.
The hope is for a tighter framework to ensure the involvement of EU companies, presumably in case the CBAM (Carbon Border Adjustment Mechanism) and tariff reforms are bypassed. The EU has a tendency to be a bit naive, so there really should be more foolproof systems, considering that today’s global trade policy and geopolitics are what they are—i.e., heading in a different direction than before.
Edit: It’s worth noting that according to this, the IAA would only require a 25% low-carbon share in public procurement, which would correspond to about 5% of total consumption. This could also be based on non-EU trade agreements.
The proposal offers some welcome foundations that could stimulate demand for low-carbon steel.
But the demand signal remains limited.
The proposal requires 25% of steel in public procurement and public support schemes to be low-carbon - yet it does not require that this steel be produced in Europe.
This matters.
25% of public procurement represents less than 5% of the total steel market, and public support schemes vary widely across Member States.
Without stronger and clearer demand signals, these measures may not provide the long-term certainty needed for major industrial investments.
To make lead markets work, the EU must ensure it supports low-carbon steel made in Europe, not made in third-countries.
The Industrial Accelerator Act is a welcome start - but it must go further to increase demand for green steel made in Europe.
EUROFER therefore calls for:
a clear definition of “Made in Europe” for steel, based on steel melted and poured in the EU and EEA