European Commission Publishes Steel and Metals Action Plan: Is It Enough?
After years of advocating for a comprehensive response, the European Commission has finally released the Steel and Metals Action Plan alongside the Transition Pathway for the metal sectors. This significant move acknowledges the key threats facing Europe’s energy-intensive steel industry and sets out a framework for the future. The plan aims to support the EU's steel and metals sectors, which have been under extreme pressure due to high energy prices, trade challenges, and global overcapacity.
However, despite its importance, IndustriAll Europe, a key industrial trade union, has raised concerns about the effectiveness of the proposals. While the Action Plan rightly diagnoses the challenges facing the sector, experts argue that the proposed solutions lack sufficient detail and urgency to provide immediate relief. This article will examine the strengths and weaknesses of the plan and discuss whether it offers the much-needed support to ensure the future of Europe’s steel industry.
The Six Central Pillars of the Action Plan
The Steel and Metals Action Plan is built on six central pillars that outline the EU’s approach to improving the competitiveness and sustainability of the sector. These pillars are:
1. Energy Costs
2. The Carbon Border Adjustment Mechanism (CBAM)
3. Trade and Overcapacity
4. Circularity
5. Jobs
6. Demand for Low-Carbon Products
These areas reflect the critical issues currently impacting the steel sector in Europe. While many of these proposals are viewed as positive steps, there is concern over the lack of concrete actions in some areas, especially with respect to energy prices and the protection of steelworkers’ jobs.
A Step Forward in Trade Protection and Circularity
One of the major highlights of the plan is its commitment to strengthening trade protections for the EU’s steel sector. This includes measures to combat global overcapacity and prevent unfair trade practices such as dumping and foreign subsidies. The introduction of the melted and poured rule is seen as a critical move in preventing circumvention of trade regulations. It requires that metal goods be subject to duties based on the origin of steel production—not just the final product.
In addition, the Carbon Border Adjustment Mechanism (CBAM) is designed to address key loopholes in the previous framework, such as export exemptions, resource shuffling, and downstream products. IndustriAll Europe has welcomed these steps but has emphasized the need for quick and effective implementation of these measures.
On the topic of circularity, the plan proposes several significant actions, such as promoting recycled content requirements, improving material separation processes, and ensuring the availability of metal scraps for European manufacturers. The EU’s commitment to developing lead markets for low-carbon metals is crucial for enhancing demand for EU-produced clean products. However, there are concerns that these measures may not go far enough to address the growing challenges of the industry.
The Major Shortcoming: Energy Costs
The biggest concern with the Action Plan lies in its approach to energy costs, which have become one of the most pressing issues for steelmakers. IndustriAll Europe has pointed out that while the plan acknowledges the problems posed by high energy prices, it fails to provide any concrete solutions. Energy prices in Europe remain disproportionately high compared to other regions, such as China and India, where steel production costs are lower.
Without fundamental reform of the electricity regulatory framework, European steelmakers will continue to face significant disadvantages. Additionally, the reliance on industrial flexibility to manage energy demand is seen as unsustainable in the long term. Experts argue that the European Commission must take decisive action to ensure competitive energy pricing for industrial sectors, particularly those involved in energy-intensive production processes like steelmaking.
Steel Workers: The Forgotten Stakeholders?
Another area of concern for IndustriAll Europe is the impact of the plan on steelworkers. While the Commission recognizes the need to protect high-quality jobs and uphold EU labour standards, the union argues that the plan lacks specific commitments to ensuring workers are adequately supported during the transition.
The proposal to amend the European Globalisation Fund (EGF) to support job-to-job transitions is a step in the right direction, but IndustriAll Europe believes the fund needs to be strengthened to become a proactive tool for worker protection, rather than simply a reactive measure. The steel sector’s workforce has already been severely impacted by plant closures, production cuts, and job losses, and there are concerns that the proposed measures may not be enough to ensure workers' rights and livelihoods are protected during the transition.
Judith Kirton-Darling, General Secretary of IndustriAll Europe, has stressed the urgency of immediate action. She stated, “The European Commission must ensure that these commitments lead to concrete actions that protect jobs and guarantee a Just Transition for workers. The time for delay is over—Europe’s industrial workforce needs real support, now!”
Call for Action: A Time for Real Support
The Action Plan marks a significant step in addressing the challenges faced by Europe’s steel and metals sector, but the question remains whether it provides the necessary solutions to guarantee the sector’s long-term sustainability. While it rightly diagnoses the problems and acknowledges the strategic importance of the steel industry, IndustriAll Europe insists that words alone are not enough. The EU must now take urgent and decisive actions to ensure the future of European steel, protect jobs, and guarantee a Just Transition for workers.
The European Commission is at a crossroads. While the Steel and Metals Action Plan outlines important steps forward, industry stakeholders are calling for swift and concrete actions that will make a real difference to the sector and its workforce.
Key Takeaways:
• The European Commission has unveiled the Steel and Metals Action Plan, which aims to support Europe’s energy-intensive steel sector.
• The plan is structured around six key pillars: energy costs, CBAM, trade and overcapacity, circularity, jobs, and demand.
• IndustriAll Europe has praised the trade protection measures but expressed concerns about the lack of concrete solutions on energy costs.
• The CBAM is a positive step, but implementation speed is crucial for success.
• Circularity measures, including recycled content and metal scrap availability, are welcome but may not go far enough.
• Steelworkers’ protection during the transition remains a major concern, with IndustriAll Europe calling for stronger and more proactive worker support.
• The plan’s success will depend on urgent action to address energy prices, trade practices, and worker protection.
