EU bets on green steel to boost homegrown industry

The European Commission is pushing green steel through a new proposal that will create demand via public procurement, reports Bloomberg.

Under the bloc's upcoming Industrial Accelerator Act – also called the "Made in Europe" law – at least 25% of steel used in public procurement and subsidy programmes must be low-carbon, according to the draft proposal.

Steel will be classified based on emissions during manufacturing, with exact thresholds to be set later. Scrap-based production, electric arc furnaces and green hydrogen are flagged as key technologies. Similar rules are planned for aluminium and cement.

Steel and cement prioritised

Steel and cement are being prioritised because together they account for more than 6% of the EU's annual greenhouse gas emissions, according to the draft, which could still change.

To prevent European steel and cement producers from losing competitiveness when demand shifts towards low-carbon options, the climate requirements will be combined with stricter origin rules – where procurement should primarily happen within the EU or from "trusted partners" with free trade agreements, Bloomberg reports.