The European Union has removed plans for a steel emissions label from the draft of its upcoming “Made in Europe” legislation. The measure had originally been intended to promote low-carbon steel as part of efforts to strengthen European industry while supporting the energetic transition.
The change appears in the draft of the EU’s proposed Industrial Accelerator Act, which is expected to be formally presented by the European Commission.
Concerns over regulatory complexity
According to EU officials, the decision to drop the label was driven by concerns within the European Commission that the measure could add unnecessary bureaucracy for companies.
For companies producing low-carbon steel, the removal of the label represents a setback. Industry players had supported the idea because it could have made greener steel products more visible to customers and potentially increased demand.
Remaining support for low-carbon steel
Despite the change, the draft law still includes provisions aimed at supporting greener steel production. One of these requires that steel bought through public procurement would need to be at least 25% low-carbon, to try to kick-start demand for greener steel.
Additional policies to support low-carbon steel could still be introduced through separate EU legislation, though a timeline for such measures has not yet been announced.
Low-carbon steel producer Hydnum Steel said in a statement a label was needed now and the EU should not “let the ‘perfect’ be the enemy of the ‘timely'”.”Without this classification, the impact of measures designed to create lead markets will be delayed, failing to direct vital investment toward European producers at this critical juncture,” it said.
A spokesperson for steel industry association Eurofer said delaying the label “risks kicking decisions further down the road at a time when investors need certainty now”.