The European Commission has presented its plan of action to safeguard your aluminum industry and counteract the impact of the tariffs announced by the US. However, the critical sector that still leaves unsolved issues to guarantee the effective transition towards the Green steel and towards greater European autonomy in terms of production.
In Spain, Important companies like Hydnum Steel – First green steel factory of the Iberian Peninsula and one of the only two 100% decarbonized steel production initiatives in Europe – they have positively valued the recognition of the sector as “a key pillar of the European economy.” However, the company insists on the need to not only reach zero emissions, but also to promote a circular industry that reduces the environmental impact. In this sense, they are offered to collaborate with the CE to improve the plan and include key measures.
The first of them, they point out, is that “the figures presented on the production of metals in Europe do not completely reflect the reality of the sector.” Although the EU produces 90% of its steel, “it is necessary to differentiate between flat and long steels, since Europe has a great deficit in the production of plans. We have a negative trade balance of 11 million tons and, in the case of Spain, around 4-5 million ». In addition, this type of steel “is crucial for sectors such as automotive and renewable energy, so you have to increase its production.”
Secondly, they point out that the steel sector represents 8.1% of EU greenhouse gas emissions. Although The plan recognizes the lack of financial incentives and the high energy cost as obstacles to the transitionHydnum Steel underlines the need for mechanisms that facilitate access to financing and reduce bureaucracy. It also proposes the creation of a compensation fund for companies that are committed to green steel and fiscal measures that encourage their use.
Hydnum Steel values positively that the plan reinforces the border adjustment mechanism by carbon with the aim of ensuring that imported steel meets the same climatic standards as that produced in Europe, although it underlines the importance of A regulatory framework that avoids unfair competition – especially with China – for cheaper and pollutant imports.
Finally, the document recognizes that energy costs remain up to 3 times higher in the EU than in the US, which puts the industry at a disadvantage. Therefore, the sector considers “essential” to guarantee affordable energy that the plan does not specify how it will achieve.
In general, the need to include more concrete measures to protect the most strict commercial defense mechanisms to prevent the steel “Made in Europe”, which aspires to be leader in decarbonization, is displaced by cheap imports.