A European Steel and Metals Action Plan
The European Commission has recently presented an action plan focused on the metals supply chain, in particular aluminium and steel, aiming to address a range of economic, environmental, and geopolitical challenges linked to these sectors. The plan is part of a broader context closely tied to the European Union’s decarbonisation objectives – the Clean Industrial Deal – which aims to foster the sustainable growth of European industries through the ecological transition.
A key stated objective is to achieve net zero greenhouse gas emissions by 2050, a goal that requires a profound restructuring of major industries, including the metallurgical sector. One of the central aspects of the plan concerns the fight against unfair competition on a global scale, with particular focus on supplies from certain Far-Eastern countries. These countries do not always adhere to the same environmental regulations and industrial policies as those adopted within the European Union.
To this end, the Commission proposes strengthening measures to combat unfair competition, including the introduction of new tariffs on certain imported goods within the metals supply chains. Furthermore, the plan foresees possible interventions on internal production capacities, with the aim of limiting potential overproduction that could destabilise the European market and hinder efforts to reduce the environmental impact of the sector.
Another crucial point concerns the cost of energy, which represents one of the main expenditure items for metallurgical industries. In response to this challenge, the plan suggests the establishment of energy purchasing groups, with the aim of securing more favourable energy tariffs for European companies; this approach could prove decisive in helping industries reduce operational costs while also addressing the challenges posed by energy price volatility. The Commission also urges businesses to make full use of the tax benefits offered by Member States to mitigate the impact of fluctuating energy costs.
The adoption of practices that promote the use of renewable energy, particularly green hydrogen, is another key component of the plan, which aims to reduce the carbon intensity of energy-intensive industrial sectors such as those involved in metal production.
A significant aspect concerns the issue of offshoring raw materials production. Aluminium, in particular, has experienced increasing offshoring in recent years, with negative impacts on European production capacities and local industrial policies. For a potential reversal of this trend, absolute clarity is essential regarding the Carbon Border Adjustment Mechanism (CBAM), which is expected to come into force in January next year. CBAM, as has often been highlighted, is a mechanism designed to align the carbon price at the EU’s borders, transferring the cost where appropriate to products originating from countries that do not meet environmental standards equivalent to those of the European Union.
The plan also foresees the extension of CBAM to certain downstream aluminium and steel products by 2025, thereby broadening its scope.
The action plan also focuses on promoting the recovery and recycling of metals – a domain in which the EU has the potential to assert itself as a global leader. Effective management of metal scrap is in fact crucial to reducing dependency on raw materials in short supply and to fostering a circular economy which, in addition to reducing environmental impacts, enables European industries to be more flexible and competitive.
The Commission also proposes specific measures to regulate the international trade of metal scrap in order to ensure adequate availability for European enterprises; such measures should aim to curb the export of valuable scrap, which otherwise benefits non-EU countries. At the same time, it is deemed necessary to optimise the technical classification of scrap in order to improve its accessibility and the quality of recovery, and to establish a clear definition of the technical requirements for metal scrap, so as to facilitate its recycling.
Proper classification of materials will indeed help simplify the recovery process, improve the efficiency of the entire recycling system, and increase the competitiveness of local industries. In this context, the action plan also provides for tax incentives for companies that invest in advanced metal recycling technologies, thereby encouraging the adoption of more sustainable and environmentally friendly practices.
There is no doubt about the validity of the objectives and directions outlined; the effective implementation of the plan is critical to its success. The proposed measures must, however, be accompanied by precise and coherent lines of action, along with constant monitoring of the progress achieved, impact assessment and corrections when and where needed.
The European Steel and Metals Action Plan is available here.