Industrial Accelerator Act launches lead markets - but more is needed to support green steel “Made in Europe”

It’s out: the European Commission has published its Industrial Accelerator Act (IAA) which aims to strengthen European manufacturing and accelerate the low-carbon transition.

For steel, the stakes are high.

The Act aims to create lead markets for low-carbon materials in sectors such as clean energy, mobility and infrastructure - an important step to help scale up new industrial technologies.

Europe’s steel industry is ready to deliver: companies are executing or preparing multi-billion-euro investments and have committed to cut steel-making CO2 emissions by 30% by 2030 (from a 2018 baseline).

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
➡️ the application of both low-carbon and European origin criteria in the Industrial Accelerator Act
➡️ a robust labelling framework to support lead markets
➡️ affordable electricity prices to further enable steel decarbonisation.

Read more about the Industrial Accelerator Act: Commission proposes Industrial Accelerator Act to strengthen industry and create jobs in Europe

Download below the Social Media carousel.