European Commission lowers EU ETS benchmarks for steel sector

The European Commission has published draft benchmark values for the EU Emissions Trading System (ETS) covering 2026‑2030, opening a public consultation until 8 June and pledging adoption by the end of the month. The benchmarks, calculated from the emissions performance of the 10 % most efficient installations in 2021‑2022, set reduced allowance rates for key ferrous products – for example 0.143 €/tonne for coke, 0.086 €/tonne for agglomerated iron ore and 1.248 €/tonne for hot metal, all lower than the previous 2021‑2025 levels.

Industry groups note that the new figures offer little relief for steel producers, who will continue to receive free allocations covering roughly 75 % of their emissions. The commission estimates a financial impact of about €4 billion for 2026‑2030 and retains indirect electricity‑use emissions across 14 product benchmarks to encourage industrial electrification. A sector‑specific fallback benchmark mechanism is also proposed as part of the broader EU ETS revision slated for July.