Brussels Post

United in Diversity
Tuesday, Apr 29, 2025

European Union Unveils Comprehensive Steel Action Plan Amid Industry Crisis

European Union Unveils Comprehensive Steel Action Plan Amid Industry Crisis

New strategy focuses on import restrictions, trade fairness, and low-carbon technology amidst rising energy costs.
Brussels – On March 19, the European Commission presented a six-point strategy aimed at revitalizing the beleaguered European steel industry, which has experienced significant declines in production and job losses over the past decade.

The initiative includes enhanced restrictions on imports from non-EU countries and measures to combat unfair trade practices, while promoting low-carbon technologies and setting ambitious recycling targets for ferrous scrap.

Industry data shows that the European steel sector has lost nearly 100,000 jobs since 2009. Production levels have fallen from 160 million tons in 2017 to 126 million tons in 2023. European Commission President Ursula von der Leyen emphasized the need to support domestic steel producers who face substantial challenges in the global marketplace.

The newly unveiled action plan reflects the outcome of a Strategic Dialogue on steel, involving consultations with industry associations and key stakeholders.

It identifies critical areas requiring attention, including the closure of loopholes in the carbon adjustment mechanism at European borders and the recognition of the strategic and environmental importance of steel scrap.

Henrik Adam, president of the European Steel Association (Eurofer), acknowledged the action plan while highlighting the persistent issue of elevated energy prices as a major concern for the industry.

Energy costs, which significantly impact the production of metals, accounted for 17 percent of steel production costs prior to the energy crisis and soared to 80 percent during the 2022 energy crisis.

Currently, European industries are facing energy bills that are three times higher than those of their International competitors.

The European Commission is looking at hydrogen as a potential alternative energy source, in line with its Clean Industrial Deal.

This approach will include the publication of a delegated act to facilitate an adequate supply of renewable and low-carbon hydrogen, potentially derived from nuclear power.

To further shield European industry from unfair competition, the action plan proposes the establishment of a long-term safeguard clause by the end of the year.

This clause aims to cap imports of hot-rolled steel from certain nations in relation to total EU demand.

Currently, the European steel and aluminum sectors are subject to 25 percent import tariffs imposed by the previous U.S. administration, which the Commission warns may adversely affect EU producers by limiting their market access and increasing competitive pressures from redirected exports.

Additionally, the plan includes intentions to revise the Carbon Border Adjustment Mechanism (CBAM) by year-end.

This revision aims to prevent non-European industries from falsely positioning their metals as low-carbon while continuing to utilize high-emission energy sources.

The Commission aims to ensure compatibility with World Trade Organization regulations.

The promotion of recycling is another key facet of the action plan, which emphasizes its role in reducing emissions and energy consumption within the metals industry.

Estimates suggest that recycling can save up to 95 percent and 80 percent of the energy required for producing aluminum and steel, respectively.

The Commission plans to set targets for recycled content in essential sectors and evaluate the potential for recycling requirements in other industries, including construction and electronics.

Environmental organizations, including several European NGOs, have criticized the plan for lacking necessary benchmarks, targets, and concrete actions, arguing that a more robust strategy is required to transition away from pollution-heavy production methods and to enhance recycling targets while ensuring worker equity during the transition.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Liverpool Clinches Record-Equalling 20th English League Title Under Arne Slot
Specialized anti-drone weapons deployed among security personnel Ahead of Papal Funeral
President Trump and Ukrainian President Zelensky just held an impromptu discussion on the sidelines of Pope Francis' funeral in Rome.
Pope Francis Laid to Rest in Rome as World Leaders Attend Funeral
Not Child’s Play: How Competitive Gaming Became a Global Economic Empire
California Surpasses Japan to Become the World’s Fourth-Largest Economy
Peter Navarro: The Man Behind Trump’s Tariff Madness
Former U.S. Congressman George Santos sentenced to eighty-seven months for wide-ranging fraud
Pope Francis: head of the Catholic church who pushed for social and economic justice
China do not pay these tariffs - you pay it. This is new 145% tax you pay to the US government.
Cultural Battles in the Vatican: The Candidates in the Battle for the Holy See and Pope Francis's Testament
Global Leaders Pay Tribute to Pope Francis Following His Death
Wild Chimpanzees Observed Bonding Over Alcoholic Fruit
Greek Christians Celebrate Easter in Thessaloníki
US Federal Reserve Chair Issues Warning on Tariff Impact
Australian National Charged as Mercenary for Fighting in Ukraine
Pope Francis Makes Brief Appearance at Easter Sunday Mass
Saudi Arabia Offers Max Verstappen Unprecedented Deal to Join Aston Martin
Global Pistachio Shortage Amid Rising Demand for 'Dubai Chocolate'
Trump is assembling a coalition of Western leaders aligned with the MAGA vision, strengthening a unified front for global change
IMF Predicts No Global Recession Amid Trade Tensions
Alphabet Faces Antitrust Setbacks as Federal Judges Rule Against Google
US Billionaires Call for Higher Taxes, but Proposed 'Millionaires Tax' May Not Achieve Desired Outcome
This is Vienna, Austria in 2025.
Designed in US, made in China: Why Apple is stuck in tariff tussle
Boeing Jet Returns to US from China Amid Tariff War
US Sets Deadline for Russia-Ukraine Peace Deal Brokerage
Australian Woman Gives Birth To Stranger's Baby In IVF Mix-up
Italy Introduces 'Sex Rooms' in Prisons for Inmates
California Launches Legal Challenge Against Trump Administration's Tariffs
"Groundless": China Dismisses Zelensky's Claims It's Supplying Arms To Russia
French Far-Right Writer Renaud Camus Denied Entry to UK
Italian Prime Minister Giorgia Meloni Meets with Donald Trump to Discuss EU-US Trade Tensions
South East Asia Caught in US-China Trade Dispute
Ukraine and US Sign Outline of Minerals Deal
U.S. and Panama Finalize Defense Agreements Amid Canal Access and Chinese Influence Concerns
China Stands Firm Amidst Trade Disputes with the US: A Factual Analysis
U.S. Tariff Escalation Sparks Global Trade Tensions
EU Postpones Countermeasures in Response to US Tariffs
UK Prepares to Respond to US Tariffs with Industrial Strategies and Trade Actions
Spain Encounters Nationwide Demonstrations Due to Intensifying Housing Crisis
Actor Jean-Claude Van Damme Charged with Engaging in Sexual Activities with Victims of Human Trafficking
Tom Cruise Honors Val Kilmer at CinemaCon
Global Responses to U.S. Tariffs: Varied Reactions from Key Economies
Europe Pursues Digital Autonomy in Light of Transatlantic Strains
OpenAI Attains Unprecedented $40 Billion Funding
Passenger Taken into Custody Following Masturbation Incident on SWISS Air Flight
Barcelona player Danny Alves exonerated from rape allegations.
PUTIN'S LIMOUSINE DETONATES—SECURITY CHAOS ENSUES
French Foreign Ministry Denounces U.S. Involvement in Corporate Diversity Policies
×