Climate Lobbying Overview: The European Steel Association (Eurofer) is strategically engaged with European climate policy. The association’s top-line stances on climate ambition and the energy transition have continued to improve since 2018, but it continues to lobby negatively on reforms to increase the near term stringency of key EU climate regulations such as the EU Emissions Trading System (EU ETS) or Energy Taxation Directive.

Top-line Messaging on Climate Policy: Eurofer communicates broad support for top-line climate ambition, for example in a joint letter to EU policymakers in May 2021 where the organization stated support for the EU’s 2050 climate neutrality objective. In a promotion campaign in 2020, the association stated support for the European Green Deal and advocated that EU leaders invest in European steel’s green transition. In a 2020 policy paper on the European Green Deal, the association supported “a supportive regulatory framework and enabling policies” and a Green Deal on Steel to respond to help the sector achieve the EU’s climate objectives and decarbonize. The association communicated support for government regulation to respond to climate change in a position paper in February 2021, but stressed that European energy and climate policy must ensure international and domestic competitiveness. In a meeting with a member of President Von Der Leyen’s cabinet in March 2021, Eurofer emphasized the importance of carbon leakage protection and cost-effectiveness in the Fit for 55 package.

Engagement with Climate-Related Regulations: Eurofer appears largely negatively engaged with specific EU climate regulations. Eurofer does not seem to have supported increasing the EU’s 2030 Climate Target, stating in a 2020 consultation response that it disagreed that the opportunities would outweigh the challenges of increasing the target, and appearing to stress the risks of unilateral action and the long-term horizons of investment in the steel sector. However, the association stated support for CO2 standards as a mid-term and long-term measure in a 2020 position paper.

In a comment on an EU consultation in 2020, Eurofer appears to have advocated against a range of proposed reforms to the EU ETS, including mechanisms to reduce the amount of free allocation of emissions allowances for industry. In response to a public consultation in 2020, Eurofer did not seem to support extending the ETS to other sectors such as buildings and road transport, advocating instead for separate schemes. In March 2021, the association’s Director General Axel Eggert seemed to support a carbon border adjustment mechanism alongside existing carbon leakage protection measures under the EU ETS, but also stated support for a phase out of these measures when a sustainable market for green steel is fully formed. In a joint email to lawmakers in 2021, Eurofer advocated to the European Parliament that a carbon border adjustment mechanism should “co-exist with the current system of free allocation.”

Eurofer seemed to support energy efficiency legislation in buildings in a contribution to an EU consultation in 2020, but did not appear to support increasing the Energy Efficiency Target to 38-40%. Additionally, in a 2021 position paper, the organization did not support mandatory targets, stressing that caps on energy usage under the Energy Efficiency Directive would stymie “future growth potential and even cause the wrong incentive to produce less”. In a position paper in 2021, Eurofer seemed to advocate against reforms to the Renewable Energy Directive to increase the EU-wide target and supported the removal of renewable energy subsidies. In a consultation response in 2021, Eurofer supported exemptions for industry from renewable energy levies and advocated for the technology neutrality principle for low-carbon energy policy. The association opposed more ambitious CO2 standards for light duty vehicles in the EU which would mean that they become zero-emission, in a public consultation response in February 2021.

Positioning on Energy Transition: Eurofer has communicated broad support for the energy transition and efforts to decarbonize the steel industry, but also stresses that energy policy must maintain the competitiveness of industry, for example in a 2020 position paper. The association has advocated in favour of hydrogen to help decarbonize industry and has supported EU’s Hydrogen Strategy in a comment on an EU consultation in June 2020, although specified that “all forms of low carbon hydrogen production should be supported in a technological neutral way.” However, Eurofer did not appear to support reforming the Energy Taxation Directive to bring it in line with the EU’s increased climate ambition by removing exemptions for fossil fuels in a response to an EU consultation in April 2020.