EUROFER: The IAA should stimulate demand for steel produced in the EU

The European steel industry has criticized the draft Industrial Accelerator Act (IAA), stating that without further refinement, it could undermine the competitiveness of EU producers. This position was announced by the EUROFER association.

The IAA aims to accelerate the decarbonization of industry and stimulate demand for low-carbon steel in key sectors, including construction, the automotive industry, and defense. However, in its current form, the industry believes the document does not provide sufficient incentives for investment in green steelmaking.

EUROFER emphasizes that the key problem is the lack of clear rules for determining origin. Currently, products can receive “Made in EU” status even if the steel is produced outside the European Union and subsequently processed within the region. Given that over 75% of steel imports come from countries with free trade agreements, this model poses significant competitive risks for local producers.

The industry is calling for the introduction of a single definition of origin based on the “produced and rolled in the EU” principle, as well as stricter requirements for the use of low-carbon steel in public procurement. Additionally, it is proposed to expand the scope of the mechanism to strategic sectors, including energy and electrical products.

The association warns that without such changes, the EU risks stimulating imports instead of developing its own production, which could lead to a loss of investment and a weakening of the industrial base.

As a reminder, EUROFER previously released proposals for urgent revisions to the CBAM mechanism ahead of the publication of the first prices for carbon certificates. This marks a new phase in the mechanism’s operation, as on April 7, 2026, the European Commission is set to announce the CO2 price that importers, particularly of steel, will pay when bringing products into the EU.