What Future for Steelmaking in the EU? - In Person Event
What Future for Steelmaking in the EU? - In Person Event
06 March 2025 12:15 – 17:00
Press Club, Rue Froissart 95, Brussel
The Clean Industrial Deal has sparked strong reactions across Europe, with industry leaders, policymakers, and experts assessing its potential for the EU economy’s competitiveness. At EPICO’s event on the future of steelmaking, MEP Brigitte van den Berg highlighted the need for Europe to accelerate investments in clean technologies to keep pace globally. She emphasised that while the EU has a great framework to accompany industrial decarbonisation, the window of opportunity is closing the longer we wait. Other regions are moving ahead with large-scale subsidies and strategic industrial policies, and Europe risks being left behind if it does not step up its strategy. At the same time, Alexandre Paquot underlined the importance of the Commission’s new emphasis on lead markets, the potential of the Industrial Decarbonisation Bank, and the need for Member States to implement the tools suggested in the new Electricity Market Design.
With Europe’s steel sector at a make-or-break moment, the discussion at EPICO’s event explored the path forward - how to balance climate ambition with industrial resilience and how policymakers can help steelmakers to secure a more competitive and low-emission steel industry.
One of the biggest challenges identified was the availability of affordable low-carbon energy, which is essential for decarbonisation. Steel producers underscored that the shift to hydrogen-based production and electric arc furnaces hinges on securing a stable supply of renewable energy at competitive prices. Without a more predictable energy pricing framework, companies will struggle to commit to long-term investments in low-emission steel technologies. Several industry representatives warned that without clear changes on future energy costs, the EU risks seeing its steel production decline rather than transform.
Another critical issue discussed was the role of lead markets in ensuring demand for low-emission steel. Currently, low-emission steel is more expensive than conventional production methods, making it difficult for companies to compete without targeted policy support. Panellists called for stronger incentives, such as green public procurement, carbon contracts for difference, and demand-side measures to ensure that low-emission steel finds a market. It was noted that without these mechanisms, European steelmakers could face a competitive disadvantage compared to international rivals operating under less stringent climate policies.
Beyond financing and demand, the discussion underscored the urgency of securing a stable regulatory environment. Industry representatives warned that policy uncertainty risks slowing down decarbonisation efforts, making it clear that a predictable framework is just as important as financial support. Businesses need clarity on future carbon pricing, state aid rules, and infrastructure planning to make investment decisions. The risk of regulatory fragmentation across Member States was also raised as a key concern, with calls for a more harmonised approach at the EU level.
As Europe navigates the next steps of the Clean Industrial Deal, these factors will shape the future of steelmaking, and define the continent’s industrial competitiveness for years to come. The discussions at the event made it clear that while the path forward is challenging, the right mix of policy support, investment certainty, and market incentives can drive the transformation of the steel sector without undermining its global position.
I come from the IJmond region, where my father worked at Tata Steel. This area’s identity is deeply tied to heavy industry, but transformation is needed. Simply giving state aid to the steel factory won’t solve the issue—we need a broader strategy. If the government buys land at the harbour, the factory can reinvest, while the site becomes an energy hub for offshore wind and hydrogen. This way, we secure industry, foster clean tech, and ensure long-term economic viability. We must invest in fundamentals and ecosystems.
Brigitte van den Berg, Member of the European Parliament
To decarbonise heavy industry, we need investment, demand signals, and targeted financial tools. That’s why we’re introducing a low-carbon steel label and expanding carbon contracts for difference. The new Industrial Decarbonisation Bank will channel €100 billion over the next decade, ensuring industry can invest in its future.
Alexandre Paquot, Director, Innovation for a Low Carbon Resilient Economy, DG CLIMA, European Commission
The Hydrogen Bank, for instance, should better reflect the needs of the steel industry. Unlike sectors like mobility, which can more easily pass on the additional costs of hydrogen, we cannot. Yet no other sector achieves the same CO₂ savings per kilogram of hydrogen used—steel cuts more than 20 kilograms of CO₂ per kilo of hydrogen. No one else comes close.
