Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesStocksEarnInstitutionAI & More
Europe’s top steelmakers warn against weakening carbon market

Europe’s top steelmakers warn against weakening carbon market

Mining.comMining.com2026/06/30 13:43
By:Mining.com

The European Union’s biggest steelmakers, including Salzgitter AG and SSAB AB, urged policy makers to avoid weakening the bloc’s flagship emissions market and to support strengthening its carbon border levy.

Dampening the EU Emissions Trading System would erode investment certainty, penalize companies that decarbonize faster and delay the industry’s transition of to clean energy, the steelmakers said in a statement on Tuesday.

The warning — which was also endorsed by Outokumpu Oyj, Saarstahl AG, Dillinger and SHS — comes two weeks before a key reform of the so-called EU ETS 1, which some governments and companies criticize for boosting Europe’s stubbornly high carbon prices and hurting competitiveness.

“The primary pressure on competitiveness comes from high electricity costs due to fossil fuel dependencies, infrastructure gaps and global steel overcapacity, not from carbon prices,” the steelmakers said.

The carbon market review is set to be unveiled by European Commission on July 15 to adjust the ETS to a new 2040 climate goal of reducing emissions by 90% from 1990 levels.

For the steel companies, the reform should preserve the carbon price signal by keeping the pace of annual emission reduction in the system at 4.4% to at least 2035 and avoiding measures to artificially increase the supply of allowances.

They also want the EU to maintain the trajectory for phasing out free allowances when gradually introducing the Carbon Border Adjustment Mechanism, which is meant to ensure a level playing field for local producers against rivals from countries with weaker climate policies.

“A strong ETS1 combined with a robust and fully implemented CBAM can reinforce Europe’s competitiveness, resilience and industrial renewal,” the steelmakers said. “To make this transition investable, revenues must be channeled back into industrial decarbonization, with a particular focus on CBAM sectors.”

(By Ewa Krukowska)

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.
Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.
Trade now!

You may also like

Paramount (PSKY.US) $110 Billion Acquisition Financing Delayed: Bond Issuance Postponed for Three Months, May Have to Pay $500 Million More in Annual Interest

Paramount has been continuously pitching financing bonds to investors for the acquisition of Warner Bros. Discovery (WBD.US) for several months. However, as the negotiation period has been forced to extend, the financing costs have also risen.

智通财经•2026/09/30 15:36

Trump Plans to Announce South Korea's $200 Billion Energy Investment in the U.S., Covering Eight Nuclear Power Plants and the Alaska LNG Project

U.S. President Trump is expected to announce a plan on Wednesday for approximately $200 billion in South Korean-supported U.S. energy projects, involving eight large nuclear power plants, major power generation facilities in Texas, and an Alaskan liquefied natural gas (LNG) export project.

智通财经•2026/09/30 15:21