European Steel Association Eurofer has called on the European Commission to enact an "investment-friendly framework with affordable energy and an international playing field at its core" to help decarbonise EU steel production.
The statement was in response to the commission confirming a preference for a 90pc net greenhouse gas emission reduction by 2040, against 1990 levels.
"A 90pc headline target for the whole of the EU by 2040 means almost a full decarbonisation of energy-intensive industries such as steel," Eurofer director-general Axel Eggert said.
"In the absence of the right enabling conditions and of a drastic ramp-up of investments required for the transition, such a target puts the economic and technical feasibility of EU climate policy and its interaction with other policies such as energy, trade and competition to the test. This could contribute to de-industrialisation, thus undermining the EU's resilience and strategic autonomy," he added.
Eurofer called for the EU to ensure access to clean electricity, hydrogen and raw and secondary materials for steel production in "unprecedented quantities", pointing out that EU steel industry decarbonisation alone would require the equivalent of France's total electricity consumption.
"An assertive trade policy levelling the playing field with other regions that do not share the same climate ambitions is indispensable," Eggert said. Most investment in countries outside the EU is focused on carbon-intensive technology that could disadvantage Europe on the global market, according to Eurofer.
There are 60 projects in the EU targeting low-carbon steel production. Eurofer has previously committed to cutting industry emissions by 55pc by 2030 against a 1990 baseline.
