Introduction
The European Commission has unveiled the European Steel and Metals Action Plan, a comprehensive strategy aimed at addressing the pressing challenges facing the steel and metals industry in the EU. This initiative is designed to bolster competitiveness, support decarbonization, and safeguard European jobs while ensuring a stable and resilient supply chain for critical raw materials. With global market dynamics shifting due to rising energy costs, increasing regulatory pressure, and unfair trade practices, the action plan introduces concrete measures to secure the future of Europe’s steel and metals sectors.
Addressing High Energy Costs
One of the primary objectives of the action plan is to reduce energy costs for the steel and metals industries. These sectors are among the most energy-intensive in Europe, with electricity and gas prices significantly higher than those in competing markets like the United States. The plan proposes:
- Lowering network tariffs for energy-intensive industries
- Expanding access to renewable energy sources and facilitating power purchase agreements (PPAs)
- Accelerating grid connections to enable a smoother transition to electrification
- Encouraging the use of hydrogen as an alternative fuel in metal production
By making energy more affordable and accessible, the plan aims to create a more competitive environment for European manufacturers.
Preventing Carbon Leakage and Strengthening CBAM
To ensure a level playing field in global trade, the plan strengthens the Carbon Border Adjustment Mechanism (CBAM). This policy seeks to prevent carbon leakage by imposing tariffs on imports from countries with lower environmental standards. The updated framework includes:
- Extending CBAM to cover additional downstream products
- Implementing anti-circumvention measures to prevent companies from bypassing CBAM regulations
- Proposing measures to compensate European exporters affected by carbon pricing
This approach ensures that EU producers remain competitive while maintaining high environmental standards.
Protecting European Industry from Unfair Trade Practices
The steel and metals sectors are under increasing pressure from global overcapacity, particularly from China and other subsidized markets. The European Commission is taking decisive action by:
- Introducing a new safeguard measure to replace existing protections for the steel industry after 2026
- Investigating the “melted and poured” rule to trace the true origin of imported metals and prevent circumvention of trade measures
- Strengthening monitoring of trade flows and proactively launching investigations based on threats of injury rather than waiting for actual economic damage
These actions aim to protect European manufacturers from unfair competition while promoting a more balanced global market.
Boosting the Circular Economy and Metal Recycling
A key component of the action plan is its focus on increasing the use of recycled metals to reduce dependency on imported raw materials. The EU has set ambitious targets for recycled content in key industries, including:
- Establishing mandatory recycled content requirements for steel and aluminum in the automotive and construction sectors
- Harmonizing scrap metal classifications to improve recycling efficiency
- Considering trade measures on scrap exports to ensure a stable supply for European industries
By promoting circularity, the EU aims to strengthen its resource independence while supporting sustainability goals.
Supporting Jobs and Workforce Transition
The steel and metals sectors employ hundreds of thousands of workers across Europe. As industries transition toward low-carbon production, the action plan prioritizes:
Extending the European Globalisation Adjustment Fund to support workers affected by industrial restructuring
Investing in skills development through the Pact for Skills and other reskilling programs
Ensuring strong social dialogue to protect labor rights during the transition
These measures aim to safeguard high-quality industrial jobs while preparing the workforce for future challenges.
Encouraging Investment in Green Technologies
Decarbonizing the steel and metals industry requires substantial investment in clean technologies. The action plan introduces several financial mechanisms to support this transition, including:
- Establishing the Industrial Decarbonisation Bank, targeting €100 billion in funding for low-carbon projects
- Launching a €1 billion pilot auction in 2025 to support industrial electrification and hydrogen adoption
- Reforming the Research Fund for Coal and Steel to accelerate innovation in sustainable steel production
These initiatives provide a strong financial foundation to help companies transition toward a greener, more sustainable future.
Conclusion
The European Steel and Metals Action Plan represents a bold step toward securing the future of the EU’s industrial sector. By addressing energy costs, strengthening trade defenses, promoting recycling, and supporting workforce transitions, the plan lays the groundwork for a more competitive and sustainable industry. With a strong focus on investment and innovation, it ensures that European manufacturers can continue to lead in global markets while meeting the EU’s ambitious climate goals.
This action plan is not just about protecting existing industries—it is about reshaping the future of steel and metals production in Europe, ensuring long-term resilience and economic security for the region.
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Fonti: Commission’s Action Plan to secure a competitive and decarbonised steel and metals industry
