# EUR-Lex - 52013DC0407 - EN

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# 52013DC0407

**COMMUNICATION FROM THE COMMISSION TO THE PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF REGIONS Action Plan for a competitive and sustainable steel industry in Europe /* COM/2013/0407 final */**

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Contents

1........... Steel
Industry in Europe. 3

2........... Global Market for Steel and technological
Developments. 3

2.1........ Major trends on the world market 3

2.2........ Major technological drivers and challenges. 4

3........... Meeting the challenges - the Steel Action
Plan. 5

3.1........ The right regulatory framework. 6

3.2........ Boosting demand for steel 7

3.3........ A level playing field at international level 8

Access to raw materials. 9

Trade......... 10

3.4........ Energy,
climate, resource and energy efficiency policies to boost competitiveness. 12

Affordable energy prices and supply. 12

Addressing climate policy-related issues. 14

Ensure global comparability. 15

Steel sector as a  contributor to climate and resource
efficiency goals. 15

3.5 ....... Innovation. 18

3.6 ....... The social dimension: restructuring and skill
needs. 20

4........... Conclusions. 23

1.           Steel Industry
in Europe

A strong and competitive steel sector is
important for Europe’s industrial base. The EU is
the second largest producer of steel in the world, with an output of over 177
million tonnes of steel a year, accounting for 11% of global output. Steel also forms part of a number of industrial value chains and is
closely linked to many downstream industrial sectors such as automotive,
construction, electronics, mechanical and electrical engineering. It has a
significant cross-border dimension: 500 production sites are split between 23
Member States, making it a truly European industry.

Today, the European steel sector finds itself
in a very difficult situation. The ongoing economic crisis has led to a marked downturn in
manufacturing activity and associated steel demand, which remains 27% below pre-crisis levels[1]. As a result, several production sites have closed or reduced output
with corresponding job losses, with up to 40 000 jobs lost in recent years. Consequently
the pressure to restructure and reduce production capacity will remain one
of the main challenges for this industry in the foreseeable future.

Significantly, overcapacity is not only a
European problem. Steelmaking capacity is expected to continue to increase in
the next two years[2]
with the OECD estimating that globally it will increase by 118
million tonnes to a level of 2 171 million tonnes by 2014. The European
steel industry finds itself with the simultaneous effects of low demand and overcapacity
in a globalised steel market whilst at the same time being confronted with
high energy prices and needing to invest to adjust to the green economy and
produce innovative products..

The Commission considers it essential that
 Europe remains an important steel producing region for economic, social and
environmental reasons as well as for security of supply. Following the
adoption of the Commission’s 2012 Industrial Policy Communication[3], seeking to reverse the declining role of industry in Europe from its
current level of 15.2% of GDP to as much as 20% by 2020, the March 2013 European Council concluded that it will follow-up
the Commission’s work on specific industrial sectors. This Communication
represents the Commission’s response to the crisis in the steel sector and sets
out targeted actions to ensure that the operating
environment is conducive to a competitive and sustainable steel industry, so
that it is able to solve the structural problems it faces, compete globally and
develop the next-generation of steel products vital for other key European
industries.

2.           Global
Market for Steel and technological Developments

2.1.        Major trends on the world market

Since 2000 the world market for steel has
been growing, driven by the industrialisation of emerging countries.

The drive to industrialisation in Asia has made it
the region with the world’s highest steel production and demand. China now dominates global steel output: it accounted for 39% of Asia’s crude steel
production in 2000; this rose to 71% in 2012. This increase in production has resulted in Chinese domestic overcapacity and shifted the country
from a net importer– to the largest steel exporter worldwide. The Chinese steel industry now accounts for almost 50%[4] of global steel production.

In the US, the surge in shale gas
production has improved the competitive position
of US industry with regards to energy costs and is one of the main reasons in attracting new investments
in the steel sector. This may signal a turnaround for this sector, and the US may soon become a net exporter of steel[5], further increasing the
over-supply on global markets.

In addition, some neighbouring countries (Russia, Ukraine and Turkey) have substantially improved
their steel production capacity and increased their ability to supply the EU
steel market. But an increase in production capacity across many countries is
not accompanied by an opening of markets. There is in fact an increasing
trend to protect domestic steelmakers in the past years such as Brazil and India[6]. Such measures hinder the development of a global steel market based
on a level playing field.

In this challenging
context the EU steel industry succeeded in maintaining its export level. Since 2010 EU exports are increasing and the EU has had a trade
surplus for the past four years. The steel trade surplus for 2012 was at 16,2
million tonnes (or 20 billion euros)[7].

Fair access to both
primary and secondary raw materials as well as to the maritime transport thereof, at
competitive market conditions is also crucial for the sustainable development
of the steel industry.

2.2.        Major technological drivers
and challenges

Steel is likely to remain a key material
of choice in construction and manufacturing. However,
a number of trends in steelmaking technology and steel use could affect steel
demand. Collaborative design and process innovation can be expected to be the
key drivers for such trends. This is an area where Europe can lead.

On the demand side, construction of
power stations, including on- and off-shore wind farms, energy transmission,
housing and the transport sector will continue to provide windows of
opportunities for innovative steel products.

Increasing the added value of steel
products, including tubes and pipes, is a way for
steelmakers to differentiate themselves from competitors and to increase their
competitiveness. However, as a recent OECD[8]
study highlights, high value-added steel products still account for a limited
share of steel demand with competition being intense in this segment. Moreover,
such steel production requires the use of high-cost steel rolling processes and
heavy investment in research and development (R&D).

On the production side, whereas innovation
remains key to developing new products and markets and increasing
efficiency, access to and prices of raw materials and energy will,
inter alia, determine future trends and for
import-dependent Europe the trends in these prices look set to continue
rising. With regard to the raw materials necessary to produce steel, replacing
virgin iron ore by recycled scrap (increasing the share of Electric Arc Furnace
(EAF)) and replacing coking coal by gas (deployment of direct reduced iron
(DRI)) could be decisive technology trends of the future.

Climate policies and resource efficiency
will be another important driver for technology changes. In the short term, an increase in the use of recycled scrap
material and diffusion of best available techniques (BAT) could make important
contributions to meeting climate policy targets and increase the sustainable
use of scares resources.

A recent study by the Commission[9] showed that incorporation of
BATs between now and 2022 would provide only a slight reduction in overall
total direct energy consumption and CO2 emissions if it is assumed that
strict investment conditions (short payback periods) are applied. However, a
further follow up study[10]
suggests that, with longer payback periods there could be higher reduction
potential by 2030. Beyond this, research and successful demonstration would
be required to further improve the cost-competitiveness of such BATs.

Incremental improvements in terms of energy efficiency are
expected in the short and medium term. Currently used technologies have already
undergone significant improvements[11]
and plants using best technologies are already operating close to
their thermodynamic limits. This being said, there are still some areas
where improvements could be achieved so as to make the industry more resilient
to energy costs. By reducing input costs, better energy-efficiency
can require higher up-front investments and therefore policies should be
implemented in a way that take into account the impact on competitiveness.
Consequently, the Commission will monitor the sectors which are deemed to be
exposed to a significant risk of carbon leakage to ensure that the
Energy Efficiency Directive contributes to the sustainable development of these
sectors[12].

A successful demonstration of breakthrough technologies for CO2
emission abatement including industrial carbon
capture and storage (CCS) is crucial. Before proceeding to the implementation
phase there are challenges to be overcome such as high costs and public
awareness and acceptance, as explained in the Commission’s Communication on the
Future of Carbon Capture and Storage in Europe[13].

3.           Meeting
the challenges - the Steel Action Plan

In order to identify and assess the
challenges facing the steel industry, a High‑Level
Roundtable (HLR) was set up in July 2012 by the Vice-President
and Commissioner for Industry and Entrepreneurship, in co-operation with the
Commissioner for Employment and Social Affairs.[14] The HLR served as a platform
for dialogue between the Commission, industry chief executives and trade
unions. Representatives from the main steel producing Member States and from
the European Parliament also attended these meetings. The Commission now
proposes to address the main challenges affecting the competitiveness of the EU
steel industry as follows:

3.1.        The right regulatory framework

European legislation is essential for the sustainable
development and proper functioning of the internal market, for
investor certainty and predictability and for providing a level playing field.

In line with the
Commission’s Smart Regulation agenda[15],
EU legislation must be effective and efficient in achieving its
objectives. The Commission is determined to identify excessive
burdens, inconsistencies, gaps or ineffective measures.

Furthermore, the cumulative effects of
various policies and legislation can have an impact on a business’ capacity
to innovate and take investment decisions. This can in
the medium term strengthen competitiveness. However,
competitors in the global marketplace benefit from more favourable framework
conditions, they may also lead to reductions in investment and
losses in market share leading to closure or delocalisation.

In this context, the
Commission is carrying out a cumulative cost assessment on specific sectors
such as steel or aluminium. Using all instruments within its toolkit,
the Commission is also reinforcing its analysis of the
impacts on competitiveness of its new policy proposals through the use of
"competitiveness proofing"[16]
in the context of its ex-ante impact assessments. Additionally, the Commission is carrying out
"Fitness checks" as comprehensive policy evaluations to assess
whether the regulatory framework for a policy sector is fit for purpose. These
findings will serve as an input for drawing conclusions on future policy and
regulatory frameworks.

The regulatory framework should be
designed in a smart and ambitious way so as to be a key driver for innovation, particularly when
dynamic and market-based approaches are used. Stricter environmental targets,
the use of harmonised rules, standards and public procurement
can also provide a major boost for innovation[17].

European standards could also promote sustainable production of steel construction
products. The steel industry is already developing the Steel Construction
Products Mark – SustSteel. SustSteel aims to promote
sustainability in general, and in the production of steel construction products
in particular. If it is applied in a sound and credible
manner it will have the potential to boost the market share of such European
sustainable steel construction products. This should be considered by Member
States and may require specific standardisation activities.

Regulatory concerns are also present in the
Member States. In some, value-added
tax evasion in the domestic steel market negatively
influences the operational conditions for steel producers. Due to this, they suffer
from unfair competition from the black market. In many cases this forces the
companies to limit production or stop mills. In some Member States due to this
particular tax evasion, the production and sale of rebar decreased by 15% in
2012 and already by 30% this year[18].

The Commission will: – finalise the cumulative cost assessment for the steel sector in 2013 to assess the overall regulatory burden, – continue to assess the impacts of new initiatives which can be expected to have a major influence on the competitiveness of the steel industry in its impact assessments, including the use of competitiveness proofing, as appropriate, – examine the potential of SustSteel to boost the market share of European sustainable steel construction products. It may then request specific standardisation activities, – investigate, together with Member States, possible initiatives against the illegal EU market for steel products, including VAT evasion. The Commission invites Member States to: – improve the sustainability of steel construction products by exploiting the possibility of introducing SustSteel.

3.2.        Boosting demand for steel

The world steel industry currently finds itself with approximately 542 million tonnes of
excess capacity. Out of this, almost 200 million
tonnes are located in China[19].
Presently, overcapacity is estimated at approximately 80 million tonnes in the
EU, compared to EU total production capacity of 217 million tonnes. If the steelmaking
capacity remains constant after 2014, it could take five to seven years for
demand to match capacity, if demand increases at current rates of growth.

In the EU, steel demand depends on the economic and financial status of a few
key steel using industries – for example the construction
and the automotive sectors account for a combined share of approximately
40% of steel demand. Engineering as well as electrical and electronic equipment
(EEE) industries are also important drivers for the
steel industry’s prosperity. The financial crisis has however had a substantial negative impact
on all of these industries. In order to ensure recovery
of these sectors, it is important to implement the
current EU initiatives to support the construction and automotive sectors with
the view to increasing their sustainability, resource and energy efficiency. More growth-oriented measures will stimulate the consumption of
steel.

The Commission will: – continue promoting the key steel-using sectors, specifically through the Commission’s initiative ‘CARS 2020’[20] initiative, inter alia stimulating the demand of alternative fuel vehicles[21] and through the Commission’s ‘Sustainable Construction’[22] initiative to increase the energy and resource efficiency and encourage renovation of the building stock.

3.3.        A level playing field at international level

The EU is an open market. Yet too often non-EU steel producing countries use trade
restrictions or distortions to give artificial advantages to their own steel
industries. These restrictive measures include tariff barriers, non-tariff
measures (related notably to technical regulations and conformity assessment
procedures), export incentives and subsidies as well as restrictions on
different types of steel making raw materials.

The EU addresses trade barriers and unfair
practices by forcefully implementing its market access strategy with
a view to enforcing international commitments and securing a level
playing field for EU operators in the steel sector.

Through an effective network and adequate monitoring
tools - the EU has identified key trade barriers on third country markets
which have then been targeted through appropriate enforcement instruments.
Examples of such practices listed in the EU market access database include the imposition
of export restrictions and export duties on raw materials in India, China, the Russian Federation and Egypt - among others - which contribute to
unduly raise steel production costs in the EU. Other types of barriers in third
country markets target EU products by imposing excessive licencing
procedures or requirements which ultimately hamper EU steel exports – this
practice has been identified in particular on the Indian as well as the
Indonesian markets. Investment limitations in, and public procurement
preferences for, domestic steel sectors have also been used to protect domestic
industry against EU competition notably in China and the US respectively.

To meet such challenges, the EU engages
with its partners through carefully calibrated responses in the framework of
the market access strategy. The Indian mandatory certification
requirements on certain steel products for example have been waived further
to EU demarches with the Indian authorities while dispute settlement cases have
had to be launched against China on key raw materials such as
coke to secure an unhampered supply of this input to the EU steel sector.
Meanwhile, the EU continues to address the remaining obstacles through a
well-developed network of consultation fora known as Steel Contact Groups
with the Russian Federation, China, the United States but also Japan, India and
Brazil. In addition to what can be negotiated in the framework of Free
Trade discussions, or what can effectively be addressed through the activities
of WTO working groups, these Contact Groups allow for useful exchanges to
identify and bring down the barriers that the EU industry still faces on these
expanding markets.

Another major challenge the steel industry
has to face, notably in the context of global steel overcapacity, is the possible
use of unfair trade practices in third countries aimed at exporting
excess production through predatory commercial behaviour. The Commission
addresses this challenge through application of its Trade Defence
Instruments (TDI). In 2012 eleven new investigations on iron and
steel products were initiated by the European Commission following complaints
by the industry on such unfair trade practices. This represents a net increase
as compared to the previous year and illustrates both the importance of the
problem and the determination of the Commission in confronting these practices
head on. In this process, the Commission must remain vigilant with respect to
other partners’ use of trade defence instruments which can also be a means to
unduly limit the amount and the market share of EU exports in order to protect
domestic producers. In this respect the Commission engages regularly with third
country authorities to ensure that WTO rules on safeguards, countervailing
measures and anti-dumping procedures are duly respected.

Overall, the restrictive measures that affect
the competitiveness of EU steel producers require that the EU continues
to apply with determination its market access strategy to ensure fair
international competition and a level playing field for the European
industry.

Access to raw materials

Like many other manufacturing industries,
steelmaking depends on resources that are scarce in Europe. Blast furnaces
need good quality iron ore and coking coal. Iron ore prices have
increased significantly in recent years[23]
due to strong demand from emerging economies. Weaker demand for coal in the US,
caused by the shale gas boom, has put downward pressure on coal prices in the
EU which has contributed to lower prices of coking coal, resulting in an
increase in coal use in the EU.

Steel can
be recycled again and again without the loss of key properties such as
strength, ductility or formability. Recycling of uncontaminated steel scrap can
offset the use of over 1200 kg of iron ore, 7kg of coal and 51kg of limestone
for a tonne of steel scrap used[24]. Producing steel from scrap steel
instead of virgin ore reduces energy inputs by around 75%, and saves about 90%
of raw materials inputs[25]. In view of Europe’s challenges in accessing
low price energy and raw materials it clearly makes sense to maximise the
amount of steel produced from scrap on economic grounds. The environmental
imperatives are also strong with production from scrap leading to vast
reductions in air pollution (around 86%), water use (40%) water pollution (76%)
and mining waste (97%)[26]. One tonne of steel produced from scrap reduces
CO2 outputs by 231 tonnes compared to virgin ore.

Increasing
the amount of scrap recycled in Europe will require firstly better
functioning secondary metals markets. This will depend on the cost of
retrieving metals embedded in abandoned structures, discarded products and
other waste streams and its relation to primary metal prices[27]. In order to facilitate re-use and recycling,
environmentally optimised product design should incorporate ease of
dismantling and separation of all steel components. By maximising recycling,
more steel can be kept in circulation[28]. The Eco-Design Directive[29] allows for the possibility to set out
requirements on the on the recyclability, dismantling of products in a
cost-effective way, which could contribute to ensuring better access to high
grade scrap metals.

Demand for
recycled steel has already been boosted by the extra confidence in its quality
generated by the establishment of end-of-waste criteria for iron and
steel[30].

Further
efforts are required to tackle illegal exports of scrap which are
leading to the loss of valuable raw materials for the European economy. The
Commission will come forward with proposals to tackle such illegal exports
through strengthening of Member States' capacity for inspections under the Waste
Shipment Regulation[31]. Further work is also needed on monitoring of
scrap movements.

When considering production methods,
attention should also be paid to resource efficiency and the impact on the
climate. Roughly 40% of EU steel production comes from Electric Arc Furnaces
which allow steel to be made from a 100% recycled scrap metal feedstock. Whilst
this type of production is energy intensive, the use of scrap as the primary
raw material renders it resource efficient.  As it also results in lower carbon
emissions if compared with primary steelmaking from ore, this type of
production should be encouraged. However, to do so it is necessary to have good
quality scrap, obtained in environmentally acceptable conditions. The
Commission’s raw materials strategy[32]
sets the appropriate framework under which this objective should be pursued.

To ensure proper monitoring the Commission has identified a list of 14
critical raw materials which are both economically important and subject to
a higher risk of supply interruption due to inter alia, the geographic origin of the material. Supply risk may also be
accentuated by the low substitutability and low recycling rates of the raw
material itself. This list which contains several materials needed for the
production of steel alloys will be reviewed in 2013 and coking coal will be
considered for inclusion.

Trade

Trade is particularly important for steel. Given
the indispensable role of trade as a driver of economic growth in the
globalised steel market, the Commission strongly supports the liberalisation
of international trade under the umbrella of the WTO.

At a bilateral level, negotiations of trade
agreements, in particular Free Trade Agreements (FTAs) are another key
instrument to achieve a level playing field for EU companies both in terms of
access to markets and to raw materials under conditions of fair competition.
To assess the overall impact these agreements have on EU industries and on the
EU economy, each trade agreement is subject to an analysis of the consequences
of the proposed deal for the EU once negotiations are concluded, in addition to
the ex-ante impact assessment undertaken before adoption of the negotiating
directives, and the sustainability impact assessment carried out during the
trade negotiations.

The statistical
information is important for the sector, permitting rapid analysis of
increasingly volatile steel import trends and to take the necessary initiatives
on a strong factual base.

A scenario of rising imports will be more
likely if excess production capacities worldwide continue to rise further,
encouraging recourse to subsidies and dumping in order to use global
excess capacities. Up until the end of 2012 an
automatic licence-based system (prior surveillance)[33] provided timely
information on future steel imports. After the expiry of the automatic
licence-based system, the EU will continue to
remain vigilant and monitor imports from third countries closely via the
dedicated “Surveillance 2”[34]
system. Several of the EU’s trading partners also monitor steel imports some of
which, such as the US, through a system similar to automatic licensing.

It is also important to ensure that
regulated markets for trading commodity derivatives are fair and
transparent while applying specific terms in order to support liquidity,
prevent market abuse, and prevent the build-up of market distorting positions. Different
regulations[35] may have an impact on steel makers, both
concerning trading of commodity derivatives and financial instruments.

The Commission will: In the short term – within its comprehensive trade strategy use its various trade policy tools and instruments (e.g. trade negotiations or TDI) to ensure European steel producers' have access to third country markets. In this context, –  take action against unfair trade practices in the steel sector, – continue to provide timely reports on the evolution of steel imports from non-EU countries, – continue to carry out ex-ante impact assessments of envisaged FTAs before the adoption of trade negotiating directives, as well as an analysis of the consequences for the EU of concluded FTAs before their signature, – monitor scrap markets. Given the reduced amount of CO2 in the production of scrap in Europe, non-discriminatory measures justified on environmental grounds could be envisaged, if necessary to address carbon leakage to non EU countries, provided that they do not result directly or indirectly in export restrictions, – present a legislative proposal on inspections and controls on waste shipments, – consider the inclusion of coking coal in the list of Critical Raw Materials in addition to other key essential elements for steel production, – engage with the main non-EU producing countries, in order to have an overview of the sector, its trends and to develop common approaches to the challenges that it is facing worldwide. In the long term – pursue its trade liberalisation agenda through the negotiation of FTAs, with a view to eliminate or substantially reduce tariffs and non-tariff barriers on third-country markets, ensure a sustainable access to raw materials for the EU industry, as well as an enhanced promotion of international standards for steel products, – continue to work with the Council and European Parliament, in the context of the exercise to modernise the TDI, to swiftly update the basic Anti-dumping and Anti-Subsidy Regulations. These changes would allow, inter alia, for the imposition of higher duties (a deviation from its ‘lesser duty’ rule) on imports from countries which use unfair subsidies and create structural distortions in their raw material markets; as well as more effective tools for ex-officio investigations where a threat of retaliation exists against the EU industry concerned.

3.4     Energy, climate,
resource and energy efficiency policies to boost competitiveness

Affordable energy prices and supply

Similarly to other Energy Intensive Industries (EII), energy costs
are one of the main competitiveness drivers for the European steel sector. The
steel industry estimates that energy
costs represent up to 40% of total operational costs depending on the segment of the value chain[36]. European industry is faced with higher
energy prices than most of its international competitors, a trend
which has been amplified by price development dynamics of recent years.

Electricity
and coking coal are the steel industry’s most
important energy sources and it is under pressure with regard to both. Despite
a recent drop, the price of coking coal has significantly increased over the
last years.[37] Average end-user electricity prices for EU industry are twice
those in the US[38] and substantially higher than those in most other OECD countries
(with the exception of Japan) and many major developing economies. Between 2005 and 2012 European industry faced electricity
price increases of on average 38% in real terms whereas the corresponding
figure was minus 4% for the US and plus 16% for Japan.[39] As these differences translate
into impacts on the cost structures of steel companies in different regions and
have a direct effect on global competition and competitiveness, internationally
competitive energy prices and secure energy supplies are vital for the future of the steel sector in Europe not least because they are
important in determining location and investment decisions for the steel
industry. The underlying analysis for the Commission's
Energy Roadmap 2050[40] suggests that electricity prices are likely to increase during
the period up to 2030 to thereafter slightly decline, in large part due to
infrastructure investment costs. It is therefore particularly important to
consider potential impacts on prices and costs when defining future policies
related to energy and to identify ways in which adverse impacts on the
competitiveness of energy intensive industries can be reduced or compensated.

End-user electricity price changes and
differences between countries (including within the EU) are due to a complex
interaction of various factors, including fuel costs, taxation policy, market structure,
changed approaches to price regulation, differences in climate and renewables
policies and a changing structure of power generation. The share of renewables
in the energy mix has an impact on the price of electricity. While high
shares of renewable energy with low marginal costs can have a downward pressure
on wholesale prices, the impact on end-user prices from expansion of renewable
energy can be negative in the short to medium term through the addition of
renewables levies by Member States. It is therefore important that the cost
of renewable energy comes down and that national support schemes are cost
effective. The share of taxes, tariffs and levies set by Member States
represent a substantial and in many cases increasing share of end-user prices. To
date, the steel industry and other EII benefit in some Member States from
reductions or exemptions from such taxes and levies.

Another challenge is the ETS-related
increases of electricity prices. These costs can
however be mitigated by the EU State Aid Guidelines[41] which allow
for compensation of such costs under certain circumstances to prevent carbon
leakage.

The gradual completion of the internal
energy market has helped to contain wholesale electricity prices and will
stimulate competition e.g. by eliminating market entry barriers and regulatory
obstacles, but its completion is also dependent on the expansion of the
capacity of cross-border and trans-European energy infrastructure[42]. For the internal energy market to work, the
third energy package[43]
must be implemented in full by Member States. Other important factors to
ensure competitive energy prices and costs in Europe include continued research
and innovation support to energy technologies from the proposed Horizon
2020 programme (particularly where these can enhance energy efficiency, which
can play an important role in partially offsetting the energy price gap)[44] and continued efforts to
diversify supply sources, routes and countries for gas supply. Development of
indigenous energy resources in a cost-efficient manner – be it renewables, coal
coupled with CCS, or conventional and unconventional fossil fuels – can also
have a positive impact on energy prices in the medium to long term.

The EII are highly capital-intensive with
an average investment cycle of 20 to 30 years hence they need predictability
of energy costs so as to limit investment risks. Long-term electricity contracts between
suppliers and customers, which provide such planning certainty, are possible
under EU competition rules. It is only under certain specific conditions that such
contracts can result in a foreclosure of competition in violation of the Treaty[45]. Foreclosure will normally
only occur in relation to dominant suppliers or, as a cumulative effect
resulting from similar behaviour by multiple suppliers. While allowing for
different individual contract durations and expiry dates, past Commission
decisions[46]
require that substantial volumes be returned to the market every year, making
them available for contracting by any supplier. Should the Commission case practice provide insufficient
clarity on the competition assessment of such contracts, the Commission is
prepared to issue a Guidance Letter within the meaning of the Commission Notice[47], provided that the conditions
set out in this Notice are respected.

The European Council of 22 May 2013
recognised that the
impact of high energy prices and costs must be addressed. In this context, the Commission will follow-up on the Council
Conclusions[48]. This precise monitoring of energy costs
and their impact on industry will cover the various cost components of energy
prices and their evolution over time as well as a price comparison between the
EU and other main steel producing regions, including data on corrective
measures such as exemptions and tax breaks.

In the respect of differentiated fiscal
consolidation, the European Commission recommends that fiscal adjustments
should be more growth friendly both as regards revenue and spending.
With regard to the shift to environmental taxes, these can stimulate the
development of new technologies, promote resource efficiency and the creation
of "green" jobs but the impact of high energy prices on
households and on competitiveness, including energy intensive industries, needs
to be monitored so that future decisions can be taken on the basis of sound
evidence[49].

Addressing climate policy-related issues

The steel industry is one of the largest
sources of CO2 emissions[50].
It is also a sector deemed to be at risk of carbon leakage. Due to this
risk, the steel industry will in principle be allocated emissions allowances at
100% of the benchmark based value for free. Under the ETS state aid guidelines
it may receive financial compensation as from 1 January 2013 until 31 December
2020, under the ETS third phase.

As acknowledged by the Commission's Green
Paper on the 2030 framework for climate and energy policies[51], energy and climate policies
must be implemented in a cost-effective, predictable and coherent manner.
Transparency and stability of the regulatory framework is necessary to ensure
that long-term investments, indispensable for the renewal of the industrial
base take place in Europe, especially for highly capital-intensive industries
with long-term investment periods (20 – 30 years). Therefore, the EU’s climate
policy for post-2020 will consider how technological limits, barriers and
opportunities, the effects of associated costs on competitiveness as well as
the commitments and level of ambitions of non-EU countries, can best be taken
into account.

The EU represents only 11% of global GHG
emissions with this share decreasing, so that effective international action
is required to tackle climate change. A contribution
from all major economies and all sectors in a comparable, equitable,
transparent and accountable manner is vital to achieve the objective. Improved
commitments as well as efficient systems of monitoring, reporting and
verification must be in place to ensure transparency of the future
international climate change agreement and internationally recognised standards
are essential to improve the EU’s industrial competitiveness. It is important
to identify how to finance climate objectives. The EU
low-carbon roadmap recognised that achieving new
targets would require additional investments.[52]
Application of more advanced industrial processes and equipment would be
necessary on a broad scale after 2035, because the level of CO2 emissions of
the most efficient steel plants in the EU is close to physical limits with the
technologies currently in place.

One option for innovative financing
would be the use of some of the revenues from the auctioning of emissions
allowances under the ETS to help finance climate-related objectives, possibly
including the development of new low-carbon technologies across the industries
concerned. From 2013 more than 40% of the total number of allowances within the
EU will be auctioned and then the level of auctioning will increase in a linear
manner with a view to reaching 100% by 2027.

The EU is committed to addressing the issues of competitiveness
linked to its climate change policies. Without a level playing field in
climate change policy, non-EU steelmaking competitors enjoy an unfair
competitive advantage that distorts the global market for steel and
restricts future investment in the EU, which may lead to carbon leakage.

Ensure global comparability

Materials research and control over raw
material resources is becoming increasingly important in the current global
competition for industrial leadership in low carbon technologies. Steel is a
material that has a significant potential to enable the transition to a
knowledge-based, low carbon and resource-efficient economy.[53] It has an important
role to play in the development and market roll-out of more efficient, safe and
reliable low-carbon and resource efficient technologies. To support the implementation of the EU’s climate policy and to
facilitate achieving the objectives of the UN Framework Convention on Climate
Change, a mandate was given to CEN to develop a European
Standard to assess the greenhouse gas (GHG) emissions in EII. Identifying quantifiable contributions to
emissions reductions, at plant and industry sector levels, requires transparent
methodologies and a solid consensus on monitoring, reporting and verification
procedures as well as key performance indicators. The standards will eventually
allow the validation of the methods of measuring and quantification of
process-related GHG emissions, ensure comparability of performance of plants
globally and enable assessment of their potential for improvement.

Steel sector as a contributor to climate and resource
efficiency goals

Steel contributes to CO2 reductions and
energy savings in a variety of applications such as automotive, shipbuilding, construction,
machinery, household goods, medical devices and windmills. A recent study[54] compares the CO2 savings from
innovative steel applications – such as more efficient power stations, wind
turbines or lighter vehicles – with the CO2 emissions from steel production.
The study shows that, in the case of Germany, the savings potentials achieved
through the use of steel are higher than the emissions from steel production. Steel
is fully recyclable without loss of quality. By-products of steelmaking
(e.g. slag) are almost fully utilised. Therefore with regards to the Europe2020
flagship initiative on Resource Efficiency[55],
the steel industry is well positioned to benefit from an increased focus on Life-Cycle
Approach (LCA), increase in recycling rates and better use of by-products.

Another way of
meeting the challenges of reducing GHG emissions is to further strengthen the implementation
of additional energy efficiency measures in steel making. Many plants
generate large amounts of waste heat and gas which may be utilised for power
generation or steam, to be used either at the facility itself as captive power
production or exported to neighbouring industries or the public electricity
grid. Such projects generate emissions reduction by replacing other sources of
energy production, typically from fossil fuels.

The Commission will: In the short term, To create a regulatory environment conducive to sustainable growth: – issue guidance in 2013 on renewable energy support schemes used by Member States to meet their 2020 targets for renewables, – consider, upon request, issuing a Guidance letter on the competition assessment of long-term electricity contracts in case of novel or unresolved questions, – conduct an analysis of the composition and drivers of energy prices and costs in Member States  with a particular focus on the impact on households; SMEs and energy intensive industries, and looking more widely at the EU’s competitiveness vis-à-vis its global economic counterparts ahead of the discussion at the February 2014 European Council. Report on end-user electricity prices for industry, including its components (e.g. energy component, levies and tariffs, taxes) in the EU Member States and other major economies, – analyse the impact of the ETS on electricity prices in the EU and, in the context of the 2030 climate policy discussions, examine the need for measures to address the risk of carbon leakage for specific sectors, – develop proposals for the EU's 2030 climate policy framework in a way that fully considers cost-efficiency and potential impacts on the costs for industry. The development of the 2030 climate policy will, without prejudice to the outcome of the public consultation launched by the Green Paper “A 2030 framework for climate and energy policies” endeavour to take into account, inter alia, the international competitiveness of the European industry as well as the specific features of certain industries and progress in the global climate change negotiations as well as an assessment of all relevant CO2 emissions in the EU, – ensure that the assessment of the risk of carbon leakage to be done in the context of the new carbon leakage list is performed in an open and transparent manner in accordance with the requirements of the ETS Directive taking into account the specific features of certain industries and the impacts of electricity costs on their competitiveness, – shortly propose to add the manufacturing of certain forged ferrous products to the list of sectors deemed exposed to carbon leakage for direct costs. – promote best practice in energy efficiency, based on the results of energy audits to be carried out by companies in compliance with the Energy Efficiency Directive[56], as well as on European and international studies, – promote energy efficiency investments (new boilers for power generation, gas recovery in steelmaking, Top-Pressure Recovery Turbine Plant (TRT), waste heat recovery), – consider eco-design requirements for recyclability and dismantling in order to ensure easier separation of steel suitable for recycling from relevant products. To enhance innovation: – integrate the steel industry in RDI, demonstration, deployment and market uptake measures for energy efficient products, technologies and solutions in order to implement the Energy Efficiency Directive and other energy efficiency legislations and policies, – assess how the revenues related to the ETS can be earmarked and used to finance climate-related objectives, including the deployment of new and innovative technologies in the EII. In the medium to long term To create a regulatory environment conducive to sustainable growth: – pursue negotiations towards concluding a binding international agreement on climate change by 2015 to ensure adequate commitments by all, and notably from major economies, taking into account their respective responsibilities and capabilities while ensuring transparency and accountability as well as incorporating a robust system of compliance and enforcement, – call on the European Committee for Standardisation to finalise as speedily as possible standards for assessing the GHG emissions in energy-intensive sectors, – continue its efforts to develop the Life Cycle Approach (LCA) methodology to allow better consideration of recyclability of materials, – assess the LCA evaluation along value chains and the recyclability of materials and integrate the recyclability of materials into relevant policy proposals and strategies. To diversify supply: – set the conditions to enable the future exploitation of indigenous gas fossil fuel resources, both conventional and unconventional in an environmentally safe manner, as they could contribute to reducing EU's energy import dependence and prices. The Commission invites Member States to: – in preparation for the discussions at the February 2014 European Council, based on the Commission's report, assess the impact of all national measures on the price of energy for EII such as taxation, capacity and network levies, tariffs and support mechanisms for renewables or other energy forms, – on this basis, consider appropriate measures to reduce the price of energy for EII in the respect of fiscal consolidation, competition rules and the integrity of the internal market, – consider establishing earmarking ETS revenues for RDI projects for EII, – step up efforts to decrease the gap of average energy prices and costs between the EU industry and its main competitors by strengthening market functioning and security of supply in the energy sector, – assess initiatives related to pooled electricity generation, long term contracts and partnerships, – exchange best practice and share information. The Commission will assess the impact of the measures taken and if necessary give additional recommendations to minimize energy costs for EII.

3.5     Innovation

The most modern installations in the EU
steel industry are close to the limits of what current technologies can do, and
the steel industry will struggle to achieve further significant CO2
emission reduction without the introduction of breakthrough technologies[57].
New technological innovations are several years away. Potential breakthrough
technologies were investigated in the past as part of an "umbrella"
of projects, under the name "ULCOS"[58].
The Commission supported ULCOS: funding 40 Million € in total from the 6th
Framework Programme for R&D as well as from the Research Fund for Coal and
Steel.

Under Horizon 2020, specific support for
the process industry may be given to a proposed public private partnership
(PPP), called SPIRE[59].
In addition, Carbon Capture and Storage (CCS) has been identified as a
key technology for decarbonisation of the industrial sector in the 2050 Low
Carbon Economy Roadmap[60]
as well as in the 2050 Energy Roadmap[61],
including CCS applications in industrial processes as well as in energy
production applications. It is one of the priorities of the Strategic Energy
Technology (SET) Plan with a dedicated European Industrial Initiative and Joint
Research Programme of the European Energy Research Alliance (EERA). The
importance of steel for energy applications and the needs for research and
innovation has been defined in the Materials Roadmap Enabling Low Carbon Energy
Technologies[62].
Further proposals for R&D&I activity of the kind investigated under the
previous R&D phase of ULCOS are therefore possible. For 2014-2020, research
projects will also be funded for roughly 280 million by the Research Fund for
Coal and Steel.

Looking at the future, it is clear however,
that an industrial scale demonstration project of producing steel with CCS will
be required, and the likely financial envelope will fall beyond the typical
size of a R&D&I project. Indeed, it is estimated that the full
ULCOS-related spectrum of demonstration experiments would cost in excess of 500
Million €. The leverage of other instruments is therefore clearly needed
for the next phase of commercial demonstration of CCS technologies for steel
production, for instance a new NER 300 call, a further European Energy
programme for Recovery, or the use of structural funds.

Moreover, even if such technologies are
available, their broad-scale deployment will depend on whether their
application in the EU is possible at competitive production costs, as
well as on public acceptance. In particular, CCS will need the setting
up of appropriate mechanisms to engage local communities as partners in such
endeavours and ensure an adequate carbon price.

The European steel industry is constantly
developing new types of steel to address the needs of specific applications.
However, there is today a need to stimulate R&D&I in environmentally
friendly process technologies to a much greater extent than has been the case
in the past. The potential of new sorting technologies and innovative systems,
markets and business models in further developing scrap recycling is
particularly promising in terms of improving competitiveness and reducing
environmental impact and emissions.

The European Innovation Partnership on
Raw Materials (EIP)[63]
fosters innovation through the value chain of steel, from exploration and extraction,
to efficient processing, recycling and substitution.

Industrial deployment of emerging steel
technologies can be increased using the European
Investment Bank’s (EIB) financial mechanisms[64]. Steel sector projects with a lower risk profile are often eligible for
EIB long-term financing. In addition highly innovative steel products may be
financed under the Risk Sharing Finance Facility (RSFF), which is an
innovative credit risk sharing scheme jointly set up by the European Commission
and the EIB to improve access to debt financing promoting activities with a
higher financial risk profile in the fields of research, technological
development, demonstration and innovation investments.

The Commission will: – consider to support, in the framework of Horizon 2020, in accordance with applicable state aid rules, R&D, demonstration and pilot projects for new technologies for cleaner, more resource and energy-efficient technologies, including PPPs fulfilling the relevant requirements. One potential PPP - SPIRE (Sustainable Process Industry through Resource and Energy Efficiency) and the Strategic Energy Technology Plan (SET Plan) are under preparation, – cooperate internationally in upstream research projects, where appropriate and useful in increasing European competitiveness and market access, – focus financial support more on the up-scaling and piloting phase instead of only focusing on the research phase, – explore, in the context of the EIP on Raw Materials, and in particular its forthcoming strategic implementation plan, all the options to foster innovation in the steel industry along the raw materials value chain, including recycling. The Commission invites Member States to: – explore the necessity and viability of earmarking funding sources to establish specific programmes to fund R&D&I projects in the steel sector and favour the creation of clusters. The Commission invites the European Investment Bank to: – consider long-term financing applications for steel projects that have the objective of ensuring compliance with permitting requirements under the Industrial Emissions Directive based on BATs.

3.6     The social dimension: restructuring and skill needs

The outlook for employment in the steel
sector is of serious concern and merits full political attention, not least because 40 000 jobs have been lost in recent years, due to
restructuring.

This means that,
Member States are continuing to face substantial social challenges with
regards to past and future capacity closures which have already been announced,
with several regions being affected. Furthermore, if it
becomes increasingly difficult to produce steel in Europe, industries depending
on the same value chain will also close or invest elsewhere.

For the sector to remain strategic for the
European manufacturing industry and for employment, urgent (temporary) measures
– in addition to long term measures – need to be taken. It will also require
the development of temporary working arrangements with public support to
workers in order to retain labour capacity and retrain workers
during periods of low economic conjuncture in line, where appropriate, with
applicable State aid rules.

Various EU funds and policy instruments can be mobilised to alleviate the social cost of adjustment and
to ensure that the necessary skills required are retained and developed
for the future competitiveness of the industry. This should be done in
ways which support moves over time to new advanced production techniques and
innovative products and should not preclude any necessary restructuring. Such
measures are particularly relevant for the steel sector as it will have to
tackle overcapacities.

The anticipation of restructuring needs of
the EU steel industry is key in mitigating adverse social effects. In
order to minimise its social impact, good practice in the field of training and
requalification at company level should be disseminated and promoted.

This makes it even more important for all
stakeholders to address cyclical constraints with temporary measures aimed
at preserving production and employment in the long term and to limit capacity
reduction to recognised structural overcapacity. The sector has already taken
adjustment measures by closing more than 30 mt in production capacities in the
European steel industry, 20 mt of which may be considered permanent adjustment.

At the same time, the steel industry
workforce is undergoing an unprecedented change. The age structure in most
European steel-producing companies is such that more than 20 % of the actual workforce
will have left the industry in the period 2005-2015, and close to 30 % will
leave up to 2025. The industry thus needs to be
able to attract young and creative talent.

Special activities are needed to ensure that highly-skilled
scientists and managers will take the European steel industry forward and
provide new sources of competitive advantage.

Structural funds
can help to accompany restructuring in the sector and foster innovation and
smart growth specialization. In this context of deep change and restructuring,
the European Social Fund (ESF) and the European Globalisation
Adjustment Fund (EGF) should be fully used to support the skills upgrading
and updating of workers of the sector and to help positive and quick
professional transitions for those who risk being made redundant. With adequate
national and/or regional programming, the ESF can play this role in an
anticipative way, on a permanent basis and well in advance of specific
restructuring operations – thus mitigating in advance their future impact. The
EGF may complete this by supporting with active labour market measures workers
being made redundant.

Under EU State aid rules, the steel sector can
benefit from several categories of State support measures that
contribute to the EU 2020 objectives: R&D and innovation, training and
employment aid and aid to increase environmental protection. For example, the
steel sector has already benefited from exemptions from national environmental
and energy taxes, from State aid for energy efficiency measures and from aid to
investments going beyond mandatory EU standards.
In addition, steel is recognised as one of
the sectors at risk of carbon leakage and Member States can mitigate the effect
of higher electricity prices induced by the ETS on the competitiveness of the
sector from 2013 until 2020 as explained above.

The Commission will: In the short term – promote the employment of young people in the sector through the reinforcement of apprenticeship schemes and youth-oriented recruitment processes, – encourage the creation of a European Skills Council for the steel industry, to bring together existing national organizations working on skills development and employment in the steel sector. The Skills Council can include, depending on the willingness and capacity of organisations in the sector, employers’ and workers’ representatives at European and national levels and education and training providers' organisations, – support Sector Skills Alliances, through the Erasmus for All programme[65], drawing on evidence of skills needs and trends, Sector Skills Alliances will work to design and deliver joint curricula and methods, in particular work-based learning, which provide learners with the skills required by the labour market in a specific sector, such as the steel industry, – support active training and life-long-learning policies including in relation to energy saving skills through the training of energy auditors and energy managers, – launch (on a clear request from trade unions and/or national authorities) an inter-service task force[66] to study and follow up the main cases of steel plant closures or significant downsizing, so as to streamline the use of the relevant EU Funds in case of significant downsizing or closures, – present a Quality Framework for anticipation of change and restructuring, setting out the best practices in this field to be implemented by all stakeholders, – ensure that the granting of EU funds, in the context of Horizon 2020 and of the structural funds, follows the principle of regional smart specialisation and takes into account the durability of the investment in creating and maintaining jobs in the particular region, – continue applying co-financing rules and decreased own contribution in structural funds for programme countries. The Commission invites Member States to: – explore the possibility of using together with regional authorities, the European Social Fund (ESF) for workers' retraining and re-skilling, including by setting up a specific funding measure related to the steel sector, – explore the possibility of using structural funds, together with regional authorities, in the next programming period, with a view to alleviate the social impacts of restructuring in the steel sector, – conclude the on-going negotiations on the proposal for a Regulation on the European Globalisation Adjustment Fund (EGF) for the programming period 2014-2020[67] and requesting its use, – facilitate dialogue between social partners in view of reaching an agreement on temporary initiatives to maintain jobs, such as the possibility of introducing labour flexibility schemes, with regard notably to cyclical adjustment. The Commission invites industry to: – play an active role to remedy the skills gaps and shortages, – continue the necessary adaptation of the industry in accordance with best practices on anticipation of change and restructuring, including through social dialogue and proper involvement of regional stakeholders, – examine restructuring needs and possible capacity adjustments in view of the future demand of key sectors, taking into account the need to deal differently with structural and cyclical trends, – co-operate with other stakeholders, especially national and regional authorities in ensuring that cyclical overcapacity is dealt with through publicly supported temporary measures preserving employment in the long run.

4.           Conclusions

As outlined above, the EU vision for 2030/2050
sets strategies and pathways to shift the European economy towards a
sustainable and efficient global energy system, the renewal of transport means
coupled with the establishment of a smart transport management system, as well
as the refurbishment of all buildings and their integration in smart supply
grids.

This vision is intensive in advanced materials
such as steel, the availability of which at the proper quality, volume and
price is a prerequisite to the successful implementation of that vision. Only
the right policy and regulatory framework combined with targeted action by the
Commission, Member States and industry will help the steel sector overcome its
difficulties, increase its competitiveness and produce the innovative steel
products necessary to maintain and gain market share.

The constructive discussions on steel have
highlighted the usefulness and the need to continue the dialogue among major stakeholders
in this strategic industrial sector. Therefore the Commission proposes to
formally create a High-Level Group on steel. This process would entail
an annual high-level meeting. Its main aim will be to provide a European
platform of mutual information, dialogue and exchange of best practice.
Overall, it should facilitate and support the efforts of the European steel
sector to maintain and improve its capacity to compete in the global market.

Within twelve months of the adoption of the
Action, the Commission will assess how the implementation of this Action Plan
has had an impact on the competitiveness of the steel industry and, if
necessary, give additional recommendations and guidance.

[1]               Eurofer Economic
and Steel Market Outlook, 2012

[2]               According to announcements made by companies

[3]               COM(2012) 582 final

[4]               WorldSteel Association 2012 statistics, http://www.worldsteel.org/statistics/statistics-archive/2012-steel-production.html

[5]               OECD DSTI/SU/SC(2012) 21 The future of steel: how
will the industry evolve? (December 2012)

[6]               DECISÃO CMC No 39/11, Brazil increased import tariffs on 100 products,
including several steel products, but not value-added sheet. The duties were
increased from 12% to 25% and
are valid for 12 months,
with the possibility of a one-year extension

[7]               These figures are based on the products covered by
the prior surveillance system until December 2012

[8]               OECD DSTI/SU/SC(2012) 12 The future of the steel
industry: selected trends and policy issues (December
2012)

[9]               Prospective scenarios on energy efficiency and CO2
emissions in the Iron & Steel industry (2012) – JRC

[10]             The potential for improvements
in energy efficiency and CO2 emissions in the EU27 iron and steel industry
under different payback periods, Journal of Cleaner Production (2013), http://dx.doi.org/10.1016/j.jclepro.2013.02.028

[11]             Compared to the year 1980 the use of raw materials for
crude steel production in 2008 fell from 2336 to 2015 kg/tonne (-13,7%)

[12]             Directive 2012/27/EU

[13]             COM (2013) 180 final

[14]             More information can be found at: http://ec.europa.eu/enterprise/sectors/metals-minerals/steel/high-level-roundtable/index_en.htm

[15]             COM (2010) 543 and COM (2012) 746

[16]          Competitiveness
proofing is a twelve-step tool addressing the impacts of a policy proposal on
enterprise competitiveness through its effects on the cost of doing business;
on the affected sectors' capacity to innovate; and on their international
competitiveness. It provides a simple and effective tool to deliver more
thorough analyses of the impact of proposals on competitiveness - SEC(2012) 91 final

[17]             Innovation Union - COM(2010) 546 final

[18]             Polish Steel Association statistics, 2012

[19]             OECD DSTI/SU/SC(2012) 15 Excess Capacity in the steel
industry: an examination of the global and regional extent of the challenge

[20]             COM (2012) 636 final

[21]             COM (2013) 17 final and COM (2013) 18 final

[22]             COM (2012) 433 final

[23]             Iron ore prices increased from $25 per dry metric t in
2001 to $250 in 2011

[24]             World Steel Association (2010)

[25]             US. Environmental Protection Agency

[26]             US. Environmental Protection
Agency

[27]             http://scripts.cac.psu.edu/users/n/w/nwh5089/Steel%20Recycling%20Process.pdf

[28]             www.eurofer.org/index.php/eng/content/.../517/.../SteelRecycling.pdf

[29]             Directive 2009/125/EC

[30]             http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:094:0002:0011:EN:PDF

[31]             Regulation (EC) 1013/2006

[32]             COM(2008) 699 and  COM(2011) 25

[33]             Commission Regulation (EU) No 1241/2009

[34]             The Surveillance 2 system is collecting data directly
extracted from import customs declarations. These data relate to the reference
of the customs declaration, the nature of the goods, their origin, their
volume, their value and their date of acceptance by the customs administration
(actual import date). Records are sent daily by the central systems of the
customs administrations of the EU Member States. It is based on article 308d of
the implementing provisions of the Custom Code (Regulation 2454/93)

[35]             Proposal for a Markets in Financial Instruments
Regulation COM(2011) 652, European Market
Infrastructure Regulation (EU) No 648/2012, Market
Abuse Directive 2003/6/EC amended by Directive 2008/26/EC
and Directive 2010/78/EU. MAD is currently under review, COM (2011)654 and
Proposal for a Market Abuse Regulation COM (2011) 651

[36]             Ecorys Study on European Energy-Intensive Industries –
The Usefulness of Estimating Sectoral Price Elasticities

[37]             Coking coal prices increased from $170 per t in 2009 to
$290 in 2011

[38]             International Energy Agency, Quarterly Statistics, 2nd quarter 2012

[39]             IEA: index 2005 = 100, Energy prices and taxes,
Quarterly Statistics, 4th quarter 2012. European data relates to OECD members
only

[40]             COM(2011) 885/2

[41]             2009/C 235/04

[42]             COM(2011) 676

[43]             Directives 2009/72/EC and 2009/73/EC, Regulations (EC)
No 713/2009, 714/2009 and 715/2009

[44]             COM(2011) 808 final

[45]             Articles 101 and/or 102 TFEU

[46]             Case AT. 39.386 — Long Term Electricity Contracts
France (OJ C 133, 22.5.2010, p. 5–6) and case AT.37966 — Distrigaz (OJ C 9,
15.1.2008, p. 8–8)

[47]             Commission's notice on informal guidance relating to
novel questions concerning Articles 81 and 82 of the EC Treaty that arise in
individual cases (informal guidance), OJ C 101/78, 27.4.2004

[48]             EUCO 75/1/12 of 23 May 2013

[49]             Commission Communication, 2013 European Semester:
Country specific recommendations – Moving Europe beyond the crisis, COM (2013)
350

[50]             It is estimated that between 4
and 7% of the anthropogenic CO2 emissions originate from this industry in
EU-27, which generated 252.5 million tonnes of CO2 emissions on average during
the period 2005 to 2008

[51]             COM(2013) 169 final

[52]             COM(2011)112 final

[53]             Staff Working Document SEC(2011)1609: Materials Roadmap
Enabling Low Carbon Energy Technologies

[54]             Boston Consulting Group

[55]             COM(2011) 21

[56]             Directive 2012/27/EU

[57]             Prospective scenarios on energy efficiency and CO2
emissions in the Iron & Steel industry (2012), JRC

[58]             ULCOS stands for Ultra–Low Carbon dioxide (CO2)
Steelmaking

[59]             Sustainable Process Industry
through Resource and Energy Efficiency

[60]             COM (2011) 112 final

[61]             COM (2011) 885 final

[62]             SEC(2011) 1609

[63]             COM(2012) 82 final

[64]             The not-for-profit EIB still
has a “triple-A” rating with all three credit ratings agencies and is therefore
able to borrow money on the global financial markets at extremely favourable
interest rates and pass them on to selected projects

[65]             COM(2011) 787 final

[66]             COM(2005) 120 final

[67]             COM(2011) 608