France demands protection of steel industry as a condition for supporting EU climate goals

France wants the EU to commit to strengthening trade protection for the steel industry and revising its carbon tax before supporting the bloc’s proposal to accelerate emissions reductions to 90% by 2040, Bloomberg reports.

Paris outlined the steps the bloc should take as part of its green efforts in a document circulated to other member states ahead of a meeting of competitiveness ministers on September 29.

According to the document, which Bloomberg has seen, in order to achieve its climate goals while maintaining industrial and technological sovereignty, Europe must not only transform its existing production capacities but also develop new competitive industries in strategic sectors.

France believes that this goal cannot be separated from the implementation of appropriate European industrial policy measures.

Paris is seeking the rapid adoption of new protective trade measures for steel, to be implemented as early as June 2026, and a review of the cross-border carbon adjustment mechanism (CBAM) before it enters into force.

Other demands include effective financing for industry to decarbonize and a mechanism that would trigger support measures if the EU’s competitiveness is threatened.

In addition, France wants to create markets for local producers of low-carbon products in strategic sectors (steel, cement, fertilizers, aviation and marine fuels) and adopt a carbon footprint indicator.

In October, EU heads of government are to meet in Brussels for a two-day summit. They are expected to discuss the conditions for a clean transition in order to find a solution that suits the realities of each member state.

As a reminder, this summer France spearheaded an initiative for new European steel safeguard measures. The document, which contains a roadmap for replacing the current measures, was supported by 11 EU member states.