Steelmakers insist on clearer requirements for steel in the Industrial Accelerator Law

EU steelmakers insist on further support for the sector in the Industrial Accelerator Act (IAA).

The European Steel Association (EUROFER) welcomed the EC’s proposal but called for further steps. According to the statement, the proposal launches leading markets, but more is needed to support low-carbon steel «Made in Europe.»

The European steel industry is ready to implement this policy, EUROFER noted. Companies are making or preparing multi-billion investments and have committed to reducing carbon emissions from steel production by 30% by 2030 (from 2018 baseline levels).

The IAA requires that 25% of steel in public procurement and state aid schemes be low-carbon, but there is no requirement that these steel products be manufactured in Europe. The association notes that 25% of public procurement accounts for less than 5% of the total steel market, and state aid schemes vary significantly between member states.

«Without stronger and clearer signals of demand, these measures may not provide the long-term certainty needed for major industrial investments,» the statement said.

EUROFER calls for:

• a clear definition of «Made in Europe» for steel based on steel products smelted and cast in the EU and EEA,
• the application of both low-carbon and European origin criteria in the IAA,
• a reliable labeling system to support leading markets,
• affordable electricity prices for further decarbonization of steel.

The German Steel Association (WV Stahl), in turn, noted that the IAA proposal officially classified the steel industry as a strategic sector, but still lacks binding mechanisms to protect regional production in the EU.

The proposed 25% quota is linked to the «Made in Europe» requirement in other sectors, but for steel it only applies to sustainable development. The proposal does not contain either minimum quotas for steel produced in the EU or clear quotas for added value.

As Kerstin Maria Rippel, CEO of WV Stahl, pointed out, despite its advantages, the project is unsatisfactory.

«If the EC’s proposal becomes reality in its current form, imported low-emission steel will be able to meet the same quotas as steel produced in the EU. This undermines the investment security of our industry and weakens Europe as a place to do business – at a time when industrial capacity is becoming a security policy necessity,» she said.

Although the IAA will create additional demand for low-emission steel, Rippel explains, it does not provide structural demand for domestic production in the EU. Furthermore, the IAA has no specific proposal for voluntary steel labeling.

The demand incentives created by the IAA should – with reference to the December 2025 automotive package – be extended to other key sectors such as construction, infrastructure, and energy, using «Made in the EU» criteria, the association believes.

The proposed Industrial Accelerator Law is «yet another missed opportunity to strengthen the competitiveness of the European steel industry,» said Antonio Gozzi, president of Italy’s Federacciai. According to him, one of the main critical aspects is the lack of «Made in Europe» criteria for steel, which are instead provided for other materials such as aluminum and cement.

It should be noted that according to the Industrial Accelerator Act, starting in 2029, for public contracts relating to buildings, infrastructure, or vehicles, at least 25% of the total volume of steel used must be low-carbon.

On March 4, the EC presented the Industrial Accelerator Act. Among other things, the document introduces targeted and proportionate requirements for the «Made in the EU» program.