EU unveils steel and metals plan – what's in it for the impact scene?

"The European Union was built on steel."

So proclaims the European Commission in the preamble to its "European Steel and Metals Action Plan." The plan seeks to safeguard steel and other metals production in Europe, against high energy costs, alleged over-production on the international market, and the high costs needed to decarbonise the industry.

"The steel industry has always been a core engine for European prosperity," said Commission President, Ursula von der Leyen. "Next-generation, clean steel should therefore continue to be manufactured in Europe. To make sure [steelmakers] remain competitive, we must reduce energy costs and help them introduce innovative, low-carbon technologies to the market."

Stricter supply chain

Getting into the details of how the Commission proposed to support steelmakers, it all gets quite technical quite fast, with various financial mechanisms invoked to bring energy prices under control, as well as stricter supply chain oversight to make sure customers are not benefitting from cheap, state-subsidised foreign (i.e. Chinese) supply which it is claimed is unfair to EU producers.

There are also plenty of adjustments to existing and planned frameworks in order to accelerate individual member state decarbonisation.

Hundred billion euros for steelmakers

Most notable for the impact crowd is the hundred billion euros the Commission is – at this point very much theoretically – arranging to be put into research and industry funding to help steelmakers hit ever tightening decarbonisation targets.

These are to be raised via the new Industrial Decarbonisation Bank to help European companies scale up their future decarbonisation and other energy projects.

On the smaller end, several hundred million euros will be directly allocated from various existing EU funds to, it appears, promote research and innovation in steel decarbonisation.

Money to be raised

The €100bn is however at this point largely theoretical, to be raised from public and private sources over the next years. An initial auction of €1bn is to be held this year to kick it off.

The plan also emphasises the need for a more circular steel and metals industry in Europe, with plans apparently in the works to set targets for recycled steel and aluminium, as well as promoting metal scrap trade.

The commission has also said the plan will involve tighter scrutiny to prevent 'carbon leakage' wherein non-EU countries pick up parts of the production process in ways that move emissions outside of the bloc, rather than actually eliminating them.