The European Commission has presented an action plan aimed at boosting the competitiveness and decarbonization of the steel and metals industry. The proposed measures focus on ensuring affordable and secure energy supply, preventing the relocation of CO₂ emissions, protecting and expanding European production capacities, and preserving high-quality jobs.
Stéphane Séjourné, Executive Vice-President of the European Commission for Prosperity and Industrial Strategy, is expected in Duisburg tomorrow to discuss the action plan at thyssenkrupp Steel.
Support for the European Steel Sector
European Commission President Ursula von der Leyen emphasized:
"The steel industry has always been a key driver of European prosperity.
Clean steel of the next generation should therefore continue to be produced in Europe.
That means we must support our steel producers who are facing strong headwinds in the global market. To ensure they remain competitive, we need to lower energy costs and support them in bringing innovative, low-carbon technologies to market.
With today's action plan, we offer concrete solutions for a thriving European steel industry."
Strengthening Energy Supply and Infrastructure
The action plan, developed in close consultation with stakeholders, includes promoting power purchase agreements (PPAs), using flexible energy taxes and reduced grid fees, accelerating grid access for energy-intensive industries, and expanding the use of renewable and low-carbon hydrogen.
To ensure fair competition, the carbon border adjustment mechanism (CBAM) will be reinforced. The goal is to prevent "greenwashing" in imports and extend CBAM to certain downstream steel and aluminum products by the end of 2025.
The Commission plans to strengthen trade defense measures against unfair competition, introduce new long-term protections after current safeguards expire in mid-2026, and examine the implementation of the "melt and pour rule" to determine the origin of metal products.
The action plan also sets recycling targets for steel and aluminum in key sectors, considers introducing recycling requirements for additional products, and explores trade measures to ensure the availability of metal scrap.
To minimize risks during the decarbonization process, the Commission aims to introduce resilience and sustainability criteria in public procurement, provide funding for research and innovation, and launch a pilot auction for the decarbonization and electrification of key industrial processes.
Protecting Jobs and Developing Skills
To preserve high-quality jobs, the action plan includes support for skills development and fair job transitions through active labor market policies. Employment impacts will be monitored and workers' rights protected.
Part of a Broader Industrial Strategy
This action plan is part of the Clean Industrial Deal and follows the action plan for affordable energy. It is the result of strategic dialogue led by the Commission President and the Vice-President for Prosperity and Industrial Strategy. It marks the second sectoral action plan following the automotive industry package released on March 5, 2025.
