European steelmakers demand EU ETS reform to protect jobs

ArcelorMittal, Thyssenkrupp Steel and Voestalpine – together accounting for roughly 60 % of Europe’s integrated steel production – have issued a joint appeal for a pragmatic reform of the EU Emissions Trading System (EU‑ETS). They warn that the current ETS framework could raise their production costs by about 50 % and cut output by 30‑40 % by the end of the decade, jeopardising up to five million jobs across the sector and downstream industries.

The companies propose a temporary suspension of cost increases until a viable decarbonisation pathway is in place, targeted support for early‑mover projects, reinvestment of ETS revenues into industrial decarbonisation, and a balanced approach to import‑export competition. They cite the competitive advantage enjoyed by rivals in the United States and China, where carbon pricing is lower or absent, and argue that without ETS reform Europe risks losing its industrial base while pursuing climate targets.

The appeal underscores the tension between Europe’s climate ambitions and the need to maintain a competitive, sovereign industrial sector.