Joint letter on credits for low carbon steel in the review of EU automotive CO₂ emission standards

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There is an urgent need to create predictable demand for genuinely low-carbon steel. If designed properly, low carbon steel credits can create a leading market for green steel and secure a future for a green steel industry in Europe.

Many green steel projects have been announced across Europe in recent years. However, some are facing setbacks due to a lack of demand for low-carbon steel products. Without strong and timely leading market policies, Europe risks losing industrial capacity, jobs and technological leadership.

It is therefore urgent to create predictable demand for genuinely low-carbon steel. If designed properly and not affected by additional flexibility or extensions to the scope of the Car CO₂ Regulation, credits for low carbon steel can create a leading market for green steel and secure a future for a green steel industry in Europe.

The signatories ask the co-legislators to:

1. Protects car CO₂ regulation against additional flexibilities and weakenings. If the final text included some of the most regressive proposals on the table, this would turn a powerful leading market instrument into an empty shell.
2. Start in 2030 to reward early adopters of fossil-free infrastructure.
3. Reward fossil-free iron and steel production from 2035.
4. Focus on steel made in the EU to support Europe’s industrial transformation.

Read the letter.

T&E article.