EU member states are considering extending green steel preferences to the UK and Switzerland, giving their producers the same treatment as those in the EU, Iceland, Liechtenstein and Norway. The move could apply to public procurement and support schemes, and potentially to green steel credits under CO2 standards for cars and vans.
The preference could also extend to corporate vehicle fleets and to green steel credits counted towards CO2 standards for cars and vans. Any final legal text would need to be agreed and formally adopted by the European Parliament and the EU's 27 member states.
Irish diplomats, who chair discussions among ministers until the end of December, note that the proposed single geographic scope for European preference in the automotive sector could be extended on a "conditional" basis to include Switzerland and the UK, alongside the EU, Iceland, Liechtenstein and Norway.
The measure forms part of the Industrial Accelerator Act (IAA), proposed by the European Commission on 4 March, which would introduce preferences for low-carbon and EU-origin products in procurement rules.
An EU official stressed the need for "coherence" between the IAA and proposed revisions to CO2 standards for cars. The commission has proposed that 7 percentage points of the 100pc CO2 reduction target for new car fleets from 2035 could be met through low-carbon technology credits, alongside 3 percentage points from carbon-neutral fuel credits. This would amount to a 90pc emissions reduction requirement for car fleets.
Parliament is now pushing for car manufacturers to be able to claim low-carbon steel credits up to 7.5pc to help meet their CO2 compliance obligations.
EU member states and the European Parliament are also considering the creation of a separate zero-emissions vehicle category. But a note circulated among diplomats said discussions among member states on changes to the CO2 standards have so far produced "inconclusive" results.
Some countries are also calling for "super credits" for low-carbon steel and aluminium produced in the EU and used in electric vehicles.
