The EU Steel Action plan – What is it for and why is it needed?
The EU Steel Action plan – What is it for and why is it needed?
by Steve Claus, Secretary General of Steel for Packaging Europe
EU steel, across its many sectors including automobiles, construction materials, renewable energy components (and packaging!) is integral to Europe's economic infrastructure and environmental aspirations. However, the acceleration of challenges for the sector has been fast and furious:
- Unfair trade practices from non-EU countries, are undermining the competitiveness of European steel producers,
- European steel manufacturers face energy costs that are two to three times higher than those of their counterparts in regions like the United States and China with escalating carbon costs posing further challenges, especially given the wide-reaching plans to reach carbon neutrality by 2050,
- Securing steel scrap is essential for sustainable production as it reduces the need for raw materials and uses less energy, however there are market challenges associated with keeping EU scrap in Europe.
On 19th March the EU unveiled the European Steel and Metals Action Plan, a strategic initiative to bolster the competitiveness of the European steel industry, facilitating its transition to sustainable practices, and safeguarding employment across the continent. This Action Plan marks an important milestone for the steel industry overall, and we thank the European Commission for their initiative. You can also read the reaction from our partners at Eurofer (European Steel Association) here and download the full Action Plan here.
When it comes to packaging, Steel for Packaging Europe particularly welcomes measures on keeping steel scrap in the EU and designing the future trade measures to preserve a competitive and sustainable EU steel industry, beyond 30th June 2026. If we want EU-manufactured materials to continue advancing the goals of the Clean Industrial Deal - fostering innovation and producing sustainable products that comply with REACH regulations - we must ensure fair market conditions and a level playing field. You can read more about this in this article from our Regulatory Affairs Manager, Ruaidri MacDomhnaill.
The Action Plan represents a decisive and coordinated effort to secure the future of the European steel industry, preserve employment, and contribute significantly to the EU's environmental goals. Its successful implementation will be essential not only for the steel sector but also for the broader objective of achieving a resilient and sustainable European economy.
