The European Steel and Metals Action Plan: Federacciai's Response and Concerns
On March 18, 2025, the European Commission unveiled the European Steel and Metals Action Plan, a strategic document aimed at addressing key challenges in the steel and metals sector amid a global landscape of ecological transition and sustainability. The document seeks to shape the future of the sector while tackling the green transition and global competition. However, Federacciai, the Italian Federation of Steel Companies, has expressed significant concerns about the vagueness of the plan's implementation and the failure to address several critical issues that are vital for the sector’s future.
Key Concerns Raised by Federacciai
Despite the European Commission's intention to make the steel sector more competitive, Federacciai has pointed out that the plan lacks clear implementation steps and leaves key challenges unresolved, including energy costs, trade policies, and scrap metal management. The federation's statement highlights the following critical issues:
1. Energy Costs Remain Unaddressed
The federation has criticized the plan for failing to provide concrete measures to lower energy costs for metallurgical industries. With the steel industry being energy-intensive, Federacciai warns that failure to address energy price disparities could lead to significant economic imbalances between EU countries, thereby putting European steelmakers at a disadvantage compared to their international counterparts.
2. Carbon Border Adjustment Mechanism (CBAM) Issues
While the European Commission has committed to reviewing the CBAM system to include exports, Federacciai notes that the implementation of the "melted and poured" clause has only been postponed for future evaluation. The melted and poured clause is intended to track the origin of the metal products used in steel production. Federacciai warns that this delay leaves the door open for tariff evasion by companies that may circumvent the regulations, undermining the intended fair trade measures.
3. Lack of Action on Scrap Metal Exports
Perhaps the most pressing concern for Federacciai is the export of scrap metal, a strategic resource for European steelmakers. While the European Commission has recognized the problem, Federacciai points out that there are still no concrete measures in place to ensure that scrap metal remains within Europe. The federation warns that without a clear policy to retain scrap metal, European steelmakers may face a shortage of this vital raw material. Additionally, Federacciai stresses the risk of scrap metal being exported to regions with lower environmental standards, which could seriously undermine the green transition of European steel production.
4. Future Assessment and Lack of Immediate Solutions
Federacciai has expressed disappointment that many of the actions proposed in the plan are still tied to vague future assessments. The federation calls for a clearer, more decisive approach to managing scrap metal, addressing energy costs, and ensuring that the steel sector can continue to contribute to the green transition without facing competitive disadvantages.
Federacciai's Call for Stronger Collaboration with the European Commission
Federacciai strongly advocates for a direct involvement in future discussions with the European Commission, given Italy's significant role as the second-largest steel producer in the EU and its leadership in decarbonization efforts. The federation emphasizes that Italy's steelmakers are already investing heavily in green technologies and are eager to see concrete policies that support the transition while ensuring the sector's competitiveness.
Furthermore, Federacciai suggests that the European Commission should adopt a more collaborative approach with the steel industry, working closely with key stakeholders to develop a more holistic and well-defined strategy for the sector's sustainable growth.
Key Takeaways:
• Federacciai has expressed disappointment with the European Commission’s Steel and Metals Action Plan, citing unclear implementation strategies and unresolved issues.
• Energy costs remain a major concern, with no concrete measures proposed to lower costs for metallurgical industries, which could result in economic imbalances between EU countries.
• The Carbon Border Adjustment Mechanism (CBAM) is recognized but still lacks full implementation, with concerns over potential tariff evasion due to postponed policies like the "melted and poured" clause.
• The export of scrap metal continues to be a critical issue, with no clear measures to prevent the export of scrap metal to countries with lower environmental standards, potentially undermining Europe’s green transition.
• Federacciai is calling for stronger involvement in discussions with the European Commission to address these concerns and ensure a balanced, competitive, and green transition for the European steel industry.
