COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A European Steel and Metals Action Plan
Date: 2025-03-19
Institutions: Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, European Commission
Subjects: European industrial area, action programme, competitiveness, greenhouse gas, iron and steel industry, metal waste, metals, price of energy, reduction of gas emissions, waste recycling

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 19.3.2025  COM(2025) 125 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A European Steel and Metals Action Plan  
 
 
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

A European Steel and Metals Action Plan 

It  is  no  coincidence  that  the  European  Union  was  built  on  steel.  Europe  has  a 
longstanding  and  proud  history  of  steel  and  base  metals  production1.  Europe’s  edge  in 
high-value and other steel and base metals products is a crucial asset for many downstream 
industries and products. These sectors are vital for the EU’s economic security and social 
stability. Recognising their strategic importance, the Competitiveness Compass2 identified 
steel and metals as a key area for action. 

These  sectors  all  share  major  common  challenges  for  their  competitiveness:  high 
energy  costs,  exposure  to  an  unlevel  playing  field  in  international  competition, 
decarbonisation  investment  needs  and  regulatory  burden.  Over  the  last  decade,  the  EU 
share  of  global  steel  production  shrunk  to  7-8%,  while  primary  aluminium  production 
represents 3.8%3. In parallel, other countries, notably China and in recent years India, and 
several other countries in Asia and the Middle East, massively expanded their production 
capacity, often supported by distortive subsidies. As a result, just for steel, in 2024, global 
overcapacity  was  estimated  to  be  more  than  four  and  a  half  times  the  EU’s  yearly 
consumption4.  

While EU production is still able to cover most of the EU’s domestic demand in steel 
(90%)5  and  copper  (83%)6,  the  situation  is  already  more  worrying  in  aluminium 
(46%)7 and nickel (25%)8, especially considering the projected high growth in demand 
by 2030 for aluminium, copper and nickel. Additionally, all these metals are essential for 
defence. For example, a main battle tank contains 50 to 60 tonnes of high-quality steel, a 
self-propelled artillery system, up to 100 tonnes, a fighter aircraft 3 tonnes of aluminium 9. 
Ensuring a stable and resilient supply chain for these materials is critical to strengthening 
the European Defence Technological and Industrial Base, ensuring the EU’s preparedness 
and  internal  security,  meeting  EU  defence  and  aerospace  needs,  and  ensuring  tech 
sovereignty.  

The European metals industries are committed to investing in decarbonisation and 
depollution  technologies  and  contributing  to  the  EU’s  climate  and  environmental 

(1)  In  addition  to  iron  and  steel,  base  metals  include  ferro-alloys,  intricately  linked  with  the  steel  value 
chain, as well as the non-ferrous metals aluminium, copper, and nickel. In this action plan, the focus is 
on base metals that are produced and traded in large volumes, not on smaller-volume technology metals 
or precious metals, which are often critical raw materials and thus benefit from the provisions of the 
Critical Raw Materials Act.  

(2)   COM(2025) 30 10017eb1-4722-4333-add2-e0ed18105a34_en 
(3)  https://international-aluminium.org/statistics/primary-aluminium-production/   
(4)   Source: OECD steel committee: 96th Session of the Steel Committee: Statement by the Chair | OECD 

https://www.oecd.org/en/about/news/speech-statements/2024/11/96th-session-of-the-steel-committee-
statement-by-the-chair.html  

(5)  Source: Eurofer, 126 mn tonnes production/138 mn tonnes real consumption in 2023 
(6)  Source: SCRREEN factsheet 2023 on copper 
(7)  Source: European Aluminium: 7% domestic primary production + 39% domestic recycling in 2023  
(8)  Source: SCRREEN factsheet 2023 on nickel 
(9)  JRC Publications Repository - Raw materials in the European defence industry 

1 

 
 
 
ambition,  with  the  metals10  industry  representing  8.1%  of  total  EU  greenhouse  gas 
emissions in 202211 as well as being a large source of air pollutants.12 However, the current 
economic context – characterised by low returns on capital, recent margin compression 
due  to  global  overcapacity,  lack  of  customer  willingness  to  pay  a  clean  premium  and 
insufficient incentives through regulatory intervention – makes it more difficult for the EU 
metals industries to invest in decarbonisation. As a result, the commercial and financial 
business case is not sufficient to attract investors and customers. Without robust action 
and investment, the risk of plant closures and industry decline remains real, with serious 
consequences for key economic regions across Europe, as well as for our strategic sectors 
such as defence and space industries, limiting their ability to deliver critical capabilities 
and  equipment  with  the  flexibility  and  speed  required  in  a  fast-changing  geopolitical 
context. 

Location of steel and non-ferrous metals sites among the top 100 greenhouse gas emitting sites in 
the EU. Source: JRC, Energy and Industry Geography Lab 

For example, ThyssenKrupp announced plans for 11,000 lay-offs in Germany in December 
2024.  In  November  2024,  ArcelorMittal  has  postponed  its  decarbonisation  investments 
across Europe. Additionally, Liberty Ostrava announced bankruptcy in Czech Republic in 
June 2024. The aluminium sector is a warning sign of de-industrialisation risk, as it has 
permanently lost a significant part of its European production capacity. In addition, more 
than 50% of primary production capacity has been idled since 2021. At the same time, EU 
steel output has been declining since 2017, from 160 million tonnes to 126 million tonnes 
in 2023. The current steel capacity utilisation rate of approximately 65% is unsustainable 

(10)  Here, the term “metals” also includes important uses of metals as their inorganic compounds including 

(for example) battery materials, photovoltaics and semiconductors 

(11)  Source – Eurostat, includes mining, manufacture of basic metals and metals processing 
(12) Source: Industrial Emissions Portal, 2022. 

2 

 
 
 
in the long term, as such capital-intensive industries need to run at above 85% capacity to 
be competitive under market conditions. 

The Clean Industrial Deal13 and the Action Plan for Affordable Energy14 announced 
a range of measures and the need for a concrete action plan for  the metals sectors. The 
focus  is  on  the  key  competitiveness  challenges  of  lowering  energy  costs,  creating  lead 
markets for low-carbon products, increasing circularity, levelling the international playing 
field, creating quality jobs and leveraging investments. The EU will continue to rely on 
strong global partnerships to achieve its clean industrial objectives. 

This  action  plan  complements  these  broader  initiatives  and  sets  a  comprehensive 
work  programme  for  the  short  to  medium  term.  It  builds  on  the  Steel  dialogue 
convened by the Commission President on 4 March and a wider series of consultations. It 
tackles  some  of  the  key  sector-specific  issues  preventing  Europe’s  metals  industries  to 
prosper and decarbonise. It sets out concrete measures, which – combined – can provide 
an immediate relief to the metals industries while reassuring them in their decarbonisation 
pathways  and  investment  decisions.  The  transition  pathway  for  the  metals  sectors,15 
published together with this action plan, provides additional background and bottom-up 
analysis of the needs and challenges of the metals industries and the views expressed by 
the different stakeholders. This action plan will consider ongoing EU partnerships with 
third countries, especially candidate countries, as they integrate into the Single Market 
and move towards EU membership. A strategic approach to strengthening supply chain 
resilience  could  involve  investing  in  partner  countries  and  redefining  industrial 
collaborations to create a more sustainable and resilient steel production ecosystem. 

This action plan is built around six main pillars: ensuring abundant and affordable clean 
energy;  preventing  carbon  leakage;  promoting  and  protecting  European  industrial 
capacities; promoting circularity for metals; defending quality industrial jobs; and de-
risking through lead markets and support to investments.  

1.  ENSURING  ACCESS  TO  CLEAN  AND  AFFORDABLE  ENERGY  FOR  THE  METALS 

INDUSTRIES 

Energy costs remain the key driver of the metals industries’ competitiveness. Energy 
costs represent a larger share of production costs for metals and steel than for other sectors. 
Already prior to the energy crisis, this share amounted to about 17% for the steel sector,16 
and 40% for aluminium.17 During the energy crisis of 2022, these figures went as high as 
80%.18 In 2025, while energy prices decreased since the peak of 2022, they remain higher 
than historical levels and vis-à-vis other international manufacturing locations. Electricity 
prices are 2-3 times higher in the EU than in the US19, while natural gas prices are nearly 

(13)  https://commission.europa.eu/topics/eu-competitiveness/clean-industrial-deal_en 
(14)  https://energy.ec.europa.eu/strategy/affordable-energy_en 
(15) 

https://single-market-economy.ec.europa.eu/document/download/fe4b7a0b-cfb9-49fd-9d37-

139c1e23832d_en 

(16)  https://publications.jrc.ec.europa.eu/repository/handle/JRC121276  
(17)  https://www.reuters.com/markets/commodities/sky-high-energy-costs-fan-fire-under-aluminium-zinc-

prices-2022-08-12/  

(18)  https://www.reuters.com/markets/commodities/sky-high-energy-costs-fan-fire-under-aluminium-zinc-

prices-2022-08-12/ 

(19)  Electricity prices are 2-3 times US levels: €0.16 per KWh in the EU vs €0.07 in the US in the first half 
of 2024 despite having gone down in EU (by €0.04) and remained stable in US (+€0.01) compared to 
first  half  of  2023  and  despite  decreasing  energy  needs. 
  https://www.bruegel.org/policy-
brief/decarbonising-competitiveness-four-ways-reduce-european-energy-prices   

3 

 
 
 
five times those in the US.20 Direct electrification remains the most efficient pathway for 
decarbonising several forms of steel and metals production, while others will depend on 
indirect electrification methods, such as hydrogen produced from electrolysis, increasing 
the  share  of  energy  costs  in  total  production  costs  compared  with  fossil-fuel  based 
technologies. As such, ensuring access to lower electricity prices is crucial to supporting 
this  transition.  Additionally,  technologies  such  as  Carbon  Capture  and  Storage  and  the 
circular use of raw materials are also relevant. 

Lowering energy prices for energy-intensive industries 

To  overcome  this  challenging  situation,  energy  needs  to  become  more  affordable.  The 
Action Plan for Affordable Energy provides important elements of the solution, notably 
by announcing measures to make network charges more efficient, reduce energy taxes and 
levies, facilitate Power Purchase Agreements (PPAs), accelerate permitting, expand and 
modernise grids and incentivise flexibility in the electricity system. Additionally, energy-
intensive industries will be among the main beneficiaries of the EIB pilot programme on 
corporate PPAs.  

Further  solutions  targeting  specifically  the  energy-intensive  industries  should  be 
commensurate to the preeminent role played by energy costs for the competitiveness and 
decarbonisation  of  these  industries.  The  Commission  is  consulting Member  States  on  a 
clean flexibility State aid instrument based on PPAs and industry committing to consume 
clean electricity. In addition, the Commission will provide guidance to Member States on 
the  design  of  public  support  schemes  for  clean  energy  through  two-way  contracts  for 
difference, including their combination with PPAs, in view of providing a temporary price 
relief  for  energy-intensive  industries  to  enable  decarbonisation  investments  in  the  EU. 
Public  support  in  the  energy  sector  should  pay  particular  attention  to  energy-intensive 
industries  and  the  metals  sector,  especially  where  electrification  technologies  are 
available,  and  companies  can  benefit  from  these  long-term  contractual  arrangements  to 
smoothen the impacts of electricity price fluctuations. In doing so, all potential barriers to 
the use of PPAs will need to  be  considered, including  potential  impacts  on companies’ 
balance sheets21. The Commission will analyse market or regulatory failures preventing 
the optimal use of such contracts for energy intensive industries and if necessary, address 
them.  

In the short term, Member States are also called to rapidly implement and make use 
of all the flexibilities provided by the European energy legislation and State aid rules to 
lower costs for energy-intensive industries. Section 4.7.1 of the Climate, Environmental 
protection and Energy Aid Guidelines allows for reductions in the level of environmental 
taxes  and  parafiscal  levies  for  sectors  that  would  not  be  able  to  pursue  their  economic 
activities  in  a  sustainable  manner  without  the  reduction,  and  section  4.11  allows  for 
reductions of electricity levies for energy-intensive users 22. The steel and metals industries 
generally fulfil these conditions. Also, the Energy Taxation Directive allows to decrease 
electricity taxation down to zero for energy intensive industries under certain conditions, 
which creates an incentive for the sector to decarbonise via electrification and can support 

(20) Affordable Energy Action Plan 
(21)  Ongoing 
are 

initiatives 

issues: 
to 
https://www.ifrs.org/projects/completed-projects/2024/power-purchase-agreements/;  Power  Purchase 
Agreements, Endorsement consultation | EFRAG. 

working 

address 

some 

these 

of 

(22)  For sectors which are at risk of moving outside the Union to locations where environmental disciplines 

are absent or less ambitious 

4 

 
 
its broader competitiveness. Member States are also encouraged to urgently conclude the 
negotiations  on  the  Energy  Taxation  Directive23  to  make  the  tax  framework  more 
conducive to electrification and facilitate the transition away from the use of fossil fuels. 

The Clean Industrial Deal State aid framework, to be adopted in second quarter of 2025 
after  a  period  of  consultation24,  will  provide  further  flexibilities  and  simplifications  to 
enable Member States to accelerate support to industrial decarbonisation. This takes into 
account the fact that market and regulatory signals, such as the present and projected ETS 
price, are often insufficient on their own to override cost differences between traditional 
and  decarbonised  production  methods  at  this  stage.  According  to  the  draft  currently  in 
public consultation,25 simplified compatibility conditions will apply to public support for 
all  decarbonisation  technologies,  including  for  energy  efficiency  measures.  This  is 
expected  to  lead  to  cost  reductions  and  increase  competitiveness  while  reducing 
greenhouse gas emissions. Simplified schemes based on authorised aid intensities will be 
allowed besides schemes based on funding gap calculations or competitive bidding. While 
those  schemes  include  aid  caps,  large  projects  can  also  be  approved  in  a  streamlined 
procedure. Decarbonisation investments will be regarded in a technologically neutral way, 
focused  on  emission  reductions,  also  where  these  are  achieved  gradually  over  time.  In 
addition  to  direct  decarbonisation  investment  support,  accelerated  depreciation  of  clean 
tech assets, such as electrolysers or Carbon Capture Use and Storage equipment, will be 
facilitated by the new framework. 

The  State  Aid  Guidelines  for  Emission  Trading  System  (ETS)  indirect  cost 
compensation  provide scope for Member States to  compensate  carbon costs passed-on 
through the electricity bills, for certain trade-exposed and carbon-intensive sectors, which 
include  steel  and  other  metals  industries.  Member  States  are  encouraged  to  continue 
making  use  of  this  possibility,  or  to  consider  using  it  where  relevant  for  their  industry 
(currently only 14 Member States make use of this possibility). In the context of 2026 ETS 
and  CBAM  reviews,  the  Commission  will  work  towards  ensuring  adequate  measures 
(Guidelines  or  another  form)  for  indirect  ETS  cost  compensation  post-2030, while 
ensuring that this is coherent with other means to address carbon leakage.  

Furthermore, EU energy regulation provides a framework for the design of network tariffs 
based on the principles of cost-reflectiveness, transparency and non-discrimination, while 
taking into account the need for network security and flexibility. Member States can design 
their network tariffs  in  a way that benefits  energy-intensive industries. To this end, the 
Guidance on the design of network tariffs announced in the Action Plan for Affordable 
Energy for second quarter of 2025 will provide further detail on solutions to reduce system 
costs to the benefit of all users, including for energy-intensive sectors. 

Accelerating  grid  connections  and  the  uptake  of  renewable  and  low-carbon 
hydrogen  

As more and more sectors electrify, and with many network expansion projects delayed, 
the  metals  sector  is  often  faced  with  long  wait  times  for  obtaining  or  expanding  a  grid 
connection,  often  several  years.  Such  delays  have  the  potential  to  derail  entire 
electrification investments. 

(23) COM/2021/563 final 
(24) https://competition-policy.ec.europa.eu/public-consultations/2025-cisaf_en 
(25) 

https://competition-policy.ec.europa.eu/document/download/45b532ce-53fb-4907-975c-

79edaa31a166_en?filename=2025_CISAF_draft_EC_communication.pdf. 

5 

 
 
 
The Commission will work with Member States to address the problems underlying 
long  grid  connection  wait  times.  The  Commission  will  issue  Guidance  and 
Recommendations  to  the  Member  States  on  shortening  the  waiting  time  for  grid 
connections. This will include measures possible within the existing legal framework and 
will  help  the  Member  States  to  remove  speculative  or  immature  applications  from  the 
queue, and deviate, where necessary, from first come first served basis, based on objective 
criteria, in support of investments beneficial for the clean energy transition and efficiency 
of the power system. This will draw on positive existing examples in some Member States 
and  will  be  done  on  the  basis  of  dialogue  with  Member  States’  authorities.  The 
Commission  will  also  issue  guiding  principles  in  second  quarter  of  2025  identifying 
conditions  under  which  anticipatory  investments26  in  grid  projects  should  be  made. 
Flexible connection agreements can also provide a means for energy intensive industries 
to  access  the  network  while  these  grid  investments  take  place.  Furthermore,  the 
Commission will propose additional measures to facilitate and accelerate access to grid 
infrastructure for electrification projects in energy intensive industries.  

Since direct electrification is not always possible or cost-effective, hydrogen is a key 
enabler  of  decarbonisation  in  the  steel  and  metals  industries.  For  example,  direct 
reduction  using  hydrogen  is  the  most  promising  option  to  decarbonise  primary  steel 
production,  and  hydrogen  is  the  main  contender  to  provide  high-temperature  heat  in 
replacement  of  natural  gas  also  in  other  metals  industries.  To  realise  a  competitive 
transition,  abundant  and  affordable  supply  of  renewable  and  low-carbon  hydrogen  is 
needed. The Commission also announced in the Clean Industrial Deal it would adopt in 
the  coming  weeks  the  delegated  act  on  low-carbon  hydrogen  to  provide  clarity  for 
suppliers, off-takers and investors. This Delegated Act will present rules that are as flexible 
as  possible  to  achieve  the  desired  greenhouse  gas  emission  reduction  goals  for  the 
production of low-carbon fuels in a technology neutral way. 

Furthermore, the third call under the European Hydrogen Bank announced for third 
quarter  of  2025  in  the  Clean  Industrial  Deal,  will  continue  to  support  production  and 
thereby facilitating access for different industrial off-takers, including steel.  

In  addition,  the  Commission  will  reprioritise  the  mandate  of  the  European  Clean 
Hydrogen  Alliance  towards  those  sectors  where  hydrogen  is  most  relevant  for 
decarbonisation efforts. The European Commission will monitor and update the progress 
of the Alliance’s project pipeline yearly, to track the scale-up of the hydrogen market and 
provide  industrial  off-takers,  amongst  others,  with  the  necessary  certainty  for  their 
decarbonisation plans.  

Accelerating excess heat recovery and clean energy use 

Increasing energy efficiency and promoting electrification and the use of clean energy in 
the steel and metals sector can deliver benefits to the EU energy system while driving down 
costs for the sector. Steel and metals are the industrial sectors with the highest waste heat 
recovery potential in the EU, especially as regards high-grade heat resources which can be 
recovered flue gases, high-temperature liquids and waste. High-temperature heat pumps 

(26)  This  means  investments  which  anticipate  uncertain  future  electricity  demand  growth  due  to 
electrification. For such investments, charging the full costs on current users may unfairly burden early 
adopters,  slowing  down  electrification.  Therefore,  the  Action  Plan for  Affordable Energy  announces 
guidance to explain how, where relevant in targeted cases, Member States could make use of their public 
budget  to  lower  network  charges  to  cover  the  additional  costs  resulting  from  measures to  accelerate 
decarbonisation and market integration. 

6 

 
 
are becoming an increasingly versatile option to utilise excess process heat, thus reducing 
the overall energy needs of the sector. Waste heat can also be recovered and used in district 
heating  networks.  The  Commission  will  develop  and  promote  standardised 
approaches to waste heat recovery, including to replicate models such as heat purchase 
agreements and to scale up best practices on integrated planning of heat infrastructure, as 
part  of  the  Heating  and  Cooling  Strategy  announced  in  the  Action  Plan  on  Affordable 
Energy. 

Actions: 

In the coming weeks, the Commission will adopt the delegated act on low-carbon 
hydrogen.  
By Q2 2025, the Commission will issue a Guidance on the design of network tariffs 
offering possibilities to, among others, lower network tariffs for the metals sector 
and other energy-intensive industries.  

By Q2 2025, the Commission will issue guiding principles identifying conditions 
under which anticipatory investments in grid projects should be granted. 

By Q3 2025, the Commission will open the third call under the Hydrogen Bank, 
designed  supporting  production  and  thereby  facilitating  access  for  industrial  off-
takers, including steel.  
By  Q4  2025,  the  Commission  will  propose  facilitating  grid  access  to  energy-
intensive industry electrification projects. 
By Q4 2025, the Commission will provide guidance to Member States on the design 
of contracts for difference, including their combination with PPAs. 
In the context of 2026 ETS and CBAM reviews, the Commission will work towards 
ensuring  adequate  measures  (Guidelines  or  another  form)  for  indirect  ETS  cost 
compensation post-2030.  

2.  PREVENTING CARBON LEAKAGE 

To fully achieve its carbon leakage prevention potential, the Carbon Border Adjustment 
Mechanism (CBAM)’s financial obligations will enter into application in 2026, in line 
with  the  gradual  phase-out  of  free  allowances  under  the  EU  ETS  by  2034.  While 
CBAM applies to imported goods, it does not deal with the possible carbon leakage risks 
for metals produced in the EU that are subject to the EU ETS price and which are exported 
to  third  countries,  competing  with  producers  based  in  countries  with  lower  climate 
ambitions. Therefore, to address this disadvantage, the Commission will propose a solution 
to address the risk of carbon leakage for goods produced by CBAM sectors in the EU for 
export.   

Second,  there  is  a  risk  that  carbon  leakage  in  CBAM-covered  goods  could  shift 
further downstream in the value chain. This may occur through circumvention - namely 
avoiding the CBAM obligations by making slight modifications to the CBAM basic goods 
- or if EU consumers start favouring downstream goods imported from producers in third 
that  currently 
countries  with  weaker  climate  policies.  Additionally,  companies 
manufacture or process CBAM-related goods in the EU may relocate their operations to 
such  countries.  The  Commission  is  currently  quantifying  these  risks  and  will  make  a 
proposal extending CBAM to certain downstream products to address them, while also 
taking into account the need to minimize the administrative burden. 

7 

 
Third, there is a risk of circumvention of CBAM objectives when goods produced in 
low-carbon production facilities in third countries are redirected to European customers 
while  carbon-intensive  production  continues  for  other  markets  (so-called  ‘shuffling’). 
Similarly, greenwashing can occur through carbon accounting practices, such as energy-
intensive  metals  production  benefiting  from  market-based  instruments  to  appear  low-
carbon  while  still  relying  on  high-emission  energy  sources  or  misleading  scrap  content 
accounting  practices27.  To  address  both  issues  and  ensure  the  integrity  of  CBAM,  the 
Commission will present an anti-circumvention strategy. This strategy will carefully assess 
these risks and propose solutions to address them, including legislative amendments.   

Considering the urgency to create clarity in this area, the Commission will accelerate the 
work on the extension and strengthening CBAM and will frontload key elements of reform.  

Actions:  

By Q2 2025, the Commission will issue a communication providing analysis and 
options  on  how  to  address  the  problem  of  carbon  leakage  for  CBAM  goods 
exported from the EU to third countries  
By  Q4  2025,  the  Commission  will  conduct  a  comprehensive  review  of  CBAM, 
accompanied  by  an  anti-circumvention  strategy  and  by  a  first  legislative 
proposal:  
- 

extending  the  scope  of  CBAM  to  certain  steel  and  aluminium-intensive 
downstream products and  
including additional anti-circumvention measures.  

- 

3.  PROMOTING AND PROTECTING EUROPEAN INDUSTRIAL CAPACITIES   

Global  overcapacities  severely  threaten  the  profitability  and  competitiveness  of 
European industries. The EU has already adopted several trade defence measures in 
the  metals  sectors  against  unfair  global  competition.  Currently,  iron  and  steel  is  the 
sector with the most trade defence measures in place, followed by the non-ferrous metals 
and  minerals  sector.  Nevertheless,  the  industry  remains  threatened  by  global  excess 
capacities and by global distortions from China and other countries that artificially support 
their domestic industries or circumvent EU trade defence measures and sanctions. The EU 
is the only major steelmaking region seeing a decrease in capacity.  

In  addition,  the  introduction  by  the  US  of  the  25%  import  tariffs  on  steel  and 
aluminium on 12 March 2025 will not only negatively impact EU producers by limiting 
access  to  the  US  market,  including  for  base  metals  processed  into  further  downstream 
goods, but will also increase pressure from exports previously destined to the US that could 
be redirected to the EU.   

Trade defence instruments and other trade measures  

The  EU  has  reviewed  the  existing  steel  safeguard  to  address  the  latest  market 
developments and ensure the effectiveness of the measure. The Commission carried out a 
detailed investigation of the current steel safeguard measure and has made proposals to 
Member States for adjusting it to address the challenging situation faced by the EU steel 
sector.  The  proposed  adjustments  will  bring  significant  short-term  relief  to  EU  steel 

(27)  Indirect emissions under the current CBAM Transitional Period are accounted for in all CBAM sectors. 

In the Definitive phase they are only accounted for in fertilisers and cement. 

8 

 
 
 
producers by  ensuring the effectiveness  of the measure, particularly in  those categories 
where  import  pressure  is  most  acute.  In  particular,  the  significant  increase  in  imports 
combined with a decrease in demand in certain categories has been taken into account.  

The safeguard measure will legally expire on 30 June 2026, yet it is unreasonable to assume 
that the structural global overcapacities and their negative trade-related impact on the EU's 
steel industry, which triggered the use of the safeguard, will disappear on 1 July 2026. On 
the contrary, the negative trade-related effects are likely to be exacerbated, as an increasing 
number  of  third  countries  are  adopting  measures  aimed  at  limiting  imports  into  their 
markets, resulting in the EU market becoming the main receiving ground of global excess 
capacities.   

In  view  of  this  exceptional  situation,  it  is  therefore  necessary  to  introduce  an 
appropriate and effective protective measures beyond 30 June 2026 that will contribute 
to preserving a competitive and sustainable EU steel industry. That is why, by the third 
quarter of 2025 at the latest, the Commission will propose a long-term measure providing 
a highly effective level of protection to the EU’s steel sector. The Commission will work 
to ensure that the new measure  is  in force in time to replace the current safeguard and 
provides the  effective degree of remedy against negative trade-related effects caused by 
global overcapacities. It will  take into account changes in EU demand as well as security 
and  resilience  considerations,  while  preserving  a  certain  level  of  openness  in  the  EU 
market. This balanced approach will protect the Union interest, including producers and 
users, as well as importers and consumers. At the same time, the EU, in accordance with 
its international obligations, will continue to engage with its third country and multilateral 
partners to address overcapacities at a global level28.  

Furthermore,  in  December  2024,  the  Commission  launched  a  safeguard  investigation 
regarding imports of certain alloying elements, a sector critical for the EU economy as 
alloys are used to improve the strength, durability and quality of steel or aluminium, which 
will  be  finalised  by  18  November  2025.  The  Commission  will  not  hesitate  to  take 
additional  protection  measures,  should  they  be  considered  necessary  as  a  result  of  this 
investigation. 

The  situation  is  also  deteriorating  in  the  aluminium  sector.  EU  producers  lost 
substantial  market  share  over  the  last  decade  and,  in  addition,  around  50%  of  primary 
production capacity remains curtailed since 2021. The recently announced US tariffs on 
aluminium are likely to worsen the situation further given the  significant threat of trade 
diversion from multiple destinations. This is why the Commission has started to gather 
the  relevant  evidence  in  view  of  using  the  trade  defence  instruments,  including 
launching  a  safeguard  measure 
the  duly 
substantiated request is made. 

immediately  after 

investigation 

The Commission has observed a growing trend whereby exporting producers attempt 
to  circumvent  the  trade  defence  measures.  This  behaviour  risks  undermining  the 
effectiveness  of  our  TDI  measures.  This  means  that  while  the  specific  anti-dumping  or 
anti-subsidy measure adequately addresses the direct imports, the latter can be replaced by 
indirect imports whereby the ultimate stage of the production process takes place in a third 
country  not  subject  to  the  measures,  before  shipment  to  the  EU,  avoiding  payment  of 
duties. To ensure the effectiveness  of its trade defence measures,  as one of the priority 

(28)  For instance as part of the Global Forum on Steel Excess Capacity, a key platform, bringing together 28 
members  committed  to  developing  and  implementing  collective  solutions  to  the  challenge  of  excess 
capacity and enhance market functioning in the steel sector.  

9 

 
 
actions, the Commission will assess whether it should adapt its practice by introducing  
a  “melted  and  poured  rule”,  which  would  allow  the  Commission  to  act  against  the 
country  where  the  metal  was  originally  melted,  regardless  of  the  place  of  subsequent 
transformation and the origin of the good as determined by the traditional non-preferential 
rules of origin. Applying this rule would eliminate the possibility to change the origin of 
the  metal  product  by  performing  minimal  transformation  and    give  more  certainty  in 
tracing  the  origin  of  the  product.  The  Commission  will  in  any  case  remain  vigilant,  as 
overcapacities generated under non-market conditions may also have the effect of driving 
unrelated market-based producers in other third countries to export quantities to the EU 
which are displaced from their domestic or other traditional non-European markets. 

To address the fast developments in global markets and to protect the industry, the 
Commission will strengthen the monitoring of trade flows and will proactively open 
investigations based on a “threat of injury”, without waiting for material injury to occur. 
Regarding metals subject to the scope of this action plan, other than steel and aluminium, 
by third quarter of  2025 the Commission  will report on its enhanced monitoring  of the 
market situation for these sectors and will be ready to propose a trade action as appropriate. 
As announced in the Clean Industrial Deal, the Commission will work towards sharpening 
the existing Trade Defence Instruments. In this context, the Commission will also assess 
whether the current Lesser Duty Rule regime requires changes. The EU will continue 
and intensify its efforts in the multilateral context to address the global challenges faced 
by these sectors. The situation in the copper sector will be the object of close monitoring 
as in February 2025, the US opened an investigation, under Section 232 of the 1962 Trade 
Expansion  Act,  into  copper  imports,  which  could  lead  to  further  tariff  measures  and 
disruption  of  global  markets.  As  such,  European  Member  States,  although  not  major 
suppliers to the US market, could see indirect implications. 

Since  March  2022  the  EU  has  adopted  a  wide  range  of  sanctions  on  Russia  as  a 
response to its war of aggression against Ukraine, with the aim of weakening Russia’s 
economic  base,  depriving  it  of  critical  technologies  and  markets,  and  significantly 
curtailing its ability to wage war. These sanctions include import restrictions on iron and 
steel, which are one of the most stringent sets of sectoral sanctions applicable on Russia. 
In  addition  to  the  prohibition  for  imports  of  processed  aluminium  goods  from  Russia, 
already  in  place,  the  16th  package  of  sanctions  against  Russia  (adopted  on  24  February 
2025)  includes  a  ban  on  EU  imports  of  primary  aluminium  from  Russia,  with  a  quota 
mechanism to ensure a smooth transition for business. The Commission will ensure the 
effective  implementation  of  these  sanctions  and,  if  needed,  the  EU  will  impose  further 
measures to address their circumvention.  

The targeted revision of the EU’s rules on chemicals (REACH) in fourth quarter of 2025 
will contribute to simplifying rules for the chemicals industry without compromising on 
safety and environmental protection. In doing so, this revision will work to ensure a stable 
and predictable regulatory environment for metals to be produced in the EU and placed on 
the EU market.   

Actions: 

The Commission has proposed adjustments to the steel safeguard to enter into force 
on  1  April  2025.  The  measure  will  be  tightened  to  ensure  the  effectiveness  of  the 
measure and to address the latest market developments. 

10 

 
The Commission stands ready to make use of the trade defence instruments and to launch 
an investigation for safeguards in the aluminium sector immediately after the duly 
substantiated request is made.    

No later than Q3 2025, the Commission will propose a trade measure replacing the steel 
safeguards as of 1 July 2026, providing a highly effective level of protection against 
negative trade-related effects caused by global overcapacities.  

The Commission will conduct the ferroalloys safeguards investigation expeditiously, 
latest by 18 November 2025. 

The Commission  will assess the introduction of  the rule of  “melted and poured” to 
trace the country where the metal good was originally melted and poured. 

4.  PROMOTING CIRCULARITY FOR METALS 

Enhancing  circularity  is  an  important  pathway  for  the  decarbonisation  of  metal 
industries. For example, recycling can save up to 95% and 80% of the energy required for 
primary aluminium and steel production, respectively.  Recycling scrap generated in the 
EU  also  allows  to  reduce  dependencies  of  the  EU  industry  on  imported  primary  raw 
materials, such as bauxite/alumina/aluminium recognised as an EU strategic raw material, 
and where demand is expected to significantly increase.   

However, the volume of scrap used for recycling in the EU is diminishing. It is due to 
two factors: a lack of demand from the EU industry (especially for steel) and higher prices 
for  scrap  paid  by  steel  and  aluminium  producers  in  third  countries,  often  due  to  trade 
distortions, e.g. subsidies, or unfair market conditions. As a result, ferrous scrap exports 
have more than doubled over the last few years, reaching  a  maximum of 19.43 million 
tonnes in 2021 (about 20% of total scrap generated in the EU). A new record for European 
aluminium scrap is expected to be set in 2024, with aluminium scrap exports expected to 
exceed 1.3 million tonnes.   

To reverse this trend, the first objective is to stimulate demand, by increasing the use 
of such resources in the EU. To achieve this, scrap should be better sorted and treated to 
ensure  its  usability  in  high-quality  applications  such  as  automotive.  This  shift  requires 
investments from recyclers and off-takers, as well as incentives at both the EU and national 
levels29, and design requirements for relevant product groups. To facilitate the uptake of 
secondary  content  in  such  sectors  traditionally  dependent  on  primary  metals,  the 
Commission  will  prepare the setting of  targets  for recycled steel  and aluminium  in  key 
sectors in a cost-effective way, bearing in mind in its analysis the differing ability to pass 
on costs to customers and the global competition. The feasibility study for such uptake in 
the  automotive  sector  will  be  completed  by  the  end  of  2026  as  part  of  the  End-of-Life 
Vehicles Regulation currently under co-decision.  

The  Commission  will  also  assess  the  need  for  recyclability  and/or  recycled  content 
requirements for additional product groups, as well as for prioritising product design and 
waste treatment features that facilitate the separation of copper components from steel and 

(29)  Section 4.4 of the Guidelines on State aid for climate, environmental protection and energy allows for 
State aid for resource efficiency and towards a circular economy: EUR-Lex - 52022XC0218(03) - EN - 
EUR-Lex  

11 

 
 
 
aluminium  fractions.  This  will  be  addressed  through  requirements  in  delegated  acts  for 
relevant product groups under the Ecodesign for Sustainable Products Regulation and other 
relevant legislation (Construction Products Regulation, End-of-Life Vehicles Regulation, 
Circular Economy Act).  

Increasing  the  share  of  secondary  metals  production  implies  a  shift  in  certain 
production paradigms and business models. In compliance with antitrust rules, actors 
along the value chain should collaborate better to make this a reality and overcome the 
lock-in  into  established  business  models.  The  Commission  will  therefore  involve  all 
relevant stakeholders to discuss recyclability and recycled content obligations and other 
related issues. This dialogue will allow the Commission to support the preparation of the 
Circular Economy Act planned for fourth quarter of 2026, as well as, where relevant, in 
the  implementation  of  the  Ecodesign  for  Sustainable  Products  Regulation30  and  other 
appropriate frameworks. 

Second, working to increase domestic demand for metal scrap can only be effective if the 
international playing field remains fair. Acting on supply is equally necessary to ensure 
access to scrap for EU producers, while maintaining the business case for recyclers. 
The revised Waste Shipment Regulation31 provides new tools ensuring that the export of 
waste, including metal scrap, does not cause damages to the environment and human health 
in third countries, and the Commission will make use of such tools for metals scrap waste.   

An important number of third countries do not allow metal scrap to be exported to the EU, 
thereby  reducing  access  to  this  strategic  secondary  raw  material.  Certain  countries  also 
apply unfair subsidies to support their metal recycling and production industries. That is 
why  the  Commission  is  monitoring  the  situation  and  will  consider  proposing,  by  third 
quarter of 2025 at the latest, a trade measure if necessary to ensure sufficient availability 
of scrap in the EU, and in that process it will also assess the rationale and possibility of 
introducing  a  reciprocity  rule  that  would  be  compliant  with  the  EU’s  international 
obligations.   

Within the single market, metal scrap should circulate freely, to ensure that it can be 
recycled  in  the  most  performant  facilities  and  to  make  use  of  economies  of  scale.  For 
certain types of scrap, however, barriers persist due to non-harmonised waste classification 
systems. The Circular Economy Act, announced for  fourth quarter of 2026, will further 
improve the functioning of secondary raw material markets and create a single market for 
waste.  In this context, the Commission  will also  examine whether additional measures, 
such as export fees or export duties, are necessary to promote the availability of scrap in 
the EU generated with high environmental and social standards and prevent the potential 
“scrap leakage” to third countries with lower standards.  

Improving single market functioning for the metals sector also requires improving the role 
of standardisation. For instance, through standardisation, the promotion of high-strength 
steel,  the  reuse  of  structural  steel  or  the  valorisation  of  steel  by-products  could  be 

(30)  The  first  Ecodesign  for  Sustainable  Products‘  work  programme  is  expected  for  adoption  in  coming 

weeks.  

(31)  REGULATION 2024/1157, available here: Regulation - EU - 2024/1157 - EN - EUR-Lex 

12 

 
 
facilitated. The classifications of scrap qualities should also be refined to facilitate better 
matching of supply of secondary raw materials with the demand in the EU. 

Actions: 

By Q3 2025 at the latest, the Commission will consider trade measures to ensure 
sufficient availability of scrap.  

By Q4 2026, present the feasibility study on the recycled content obligations 
for steel and aluminium under the End-of-Life Vehicles Regulation. 

By Q4 2026,  prepare  for the introduction of recycled  content obligations for 
aluminium  in  relevant  construction  products  and  enhance  the  market  for 
secondary raw materials in the EU as part of the Circular Economy Act. 

By  Q4  2026,  propose  a  Circular  Economy  Act  to  further  improve  the 
functioning  of secondary raw material  markets  and create a single market  for 
waste. 

Assess  the  feasibility  of  introducing  recyclability  and/or  recycled  content 
requirements obligations for steel, aluminium and copper in specific products 
under ESPR. 

5.  DEFENDING QUALITY INDUSTRIAL JOBS  

With this action plan, the European Commission is mobilising all its tools at the service of 
a  strong,  prosperous  and  resilient  steel  and  metals  sector,  ensuring  its  long-term 
sustainability and the prosperity of its workforce. We do it to promote and protect quality 
industrial jobs, with decent pay and transparent and predictable working conditions and 
high health and safety standards.  

Europe has a longstanding tradition of steel production, with steelworkers playing a key 
role in the foundation of European manufacturing. Upholding these high-skill quality jobs 
that provide decent pay, strong labour protections, and high health and safety standards is 
essential to sustaining the sector’s competitiveness and high social value.   

Upholding  EU  legislation  on  workers’  rights,  particularly  regarding  information  and 
consultation, is essential, especially as the steel sector undergoes profound transformation 
due to the green and digital transitions. Continuously supporting and strengthening social 
dialogue is key to managing the transition effectively, ensuring trade unions and employer 
organizations have a central role, fostering inclusive decision-making and securing a fair 
and sustainable future for workers and the industry alike.  

Additionally, active labour market policies should also play a crucial role in ensuring 
a  just  transition  by  equipping  workers  with  the  skills  needed  for  emerging  industries, 
facilitating job-to-job transitions through targeted reskilling and placement services, and 
supporting entrepreneurship, particularly for young workers, women, older employees, and 
those from underrepresented regions.  The Commission recently presented the  Union of 
Skills, which aims to create skills for quality jobs, upskill and reskill the workforce as job 
requirements change, and circulate skills across the EU. The Pact for Skills, in particular 

13 

 
the Large-Scale Partnership for Energy-intensive Industries (includes steel and metal) (32), 
will also be relevant in this context. 

Furthermore, to ensure better support for workers affected by the transitions, and as already 
announced in the Automotive Action Plan, the Commission will propose in spring 2025 a 
targeted amendment to the European Globalisation Adjustment Fund Regulation to 
extend  the  possibility  of  support  to  companies  in  restructuring  processes  to  protect 
employees against the risk of unemployment. Also, to help Member States and sectoral 
partners make even better use of the opportunities offered by the European Social Fund+, 
the  Commission  will  actively  engage  with  them  to  draw  attention  to  the  opportunities 
offered by ESF+, and to bring actors together.  

More broadly, the European Commission will continue to support social partners to ensure 
a just and fair transition of the steel and metals sectors, in particular in the most affected 
regions,  building  on  the  lessons  learned  and  success  of  the  Just  Transition  Fund.  This 
requires an all-encompassing, flexible and integrated approach to helping workers, their 
families, and their communities to ensure that no worker or region in the EU is left behind, 
a vital condition to maintain public support for the clean transition.  

The  European  Fair  Transition  Observatory  and  the  Quality  Jobs  Roadmap 
announced in the Clean Industrial Deal will be instrumental in monitoring the employment 
impacts of the transition. To ensure a fair an inclusive process,  employers must integrate 
just transition principles into all industrial transformation projects, safeguarding workers' 
rights and securing quality jobs for the future  

Actions:  

In  spring  2025,  amendment  to  the  European  Globalisation  Adjustment  Fund 
Regulation. 

European  Fair  Transition  Observatory  will  be  monitoring  the  employment 
impacts of the transition.  

6.  DE-RISKING DECARBONISATION PROJECTS THROUGH LEAD MARKETS AND PUBLIC 

SUPPORT   

Many decarbonisation investments in the metals industry are currently not economically 
profitable. The savings in the short term in carbon costs are generally outweighed by the 
higher capital and operational expenditure, due to high technology costs and higher cost of 
energy  carriers  such  as  renewable  and  low-carbon  hydrogen.  Low-carbon  metals  will 
remain more expensive than their conventionally produced alternatives for the foreseeable 
future. To minimise public support needs, it is essential for metals producers to obtain a 
green premium.  

Working on lead markets 

Lead markets, both public and private, will show the way for a broader adoption of 
low-carbon  metals  as  the  market  standard.  In  these  market  segments,  notably  those 

(32)  https://pact-for-skills.ec.europa.eu/about/industrial-ecosystems-and-partnerships/energy-intensive-

industries-large-scale-partnerships_en 

14 

 
 
 
where public procurement, subsidies or regulatory  incentives  play a role in  shaping  the 
market,  targeted  requirements  or  incentives  would  create  reliable  demand  that  can  be 
served by low-carbon metals produced in Europe.  

As announced in the Clean Industrial Deal, the Commission will propose as part of the 
Industrial Decarbonisation Accelerator Act to introduce resilience and sustainability 
criteria  to foster clean European supply  for energy-intensive sectors. These criteria 
(e.g.  clean,  resilient,  circular,  cybersecure)  will  strengthen  demand  for  EU-made  clean 
products, building on the experience of the Net Zero Industry Act for clean tech, promoting 
innovation  as  well  as  EU  environmental  and  social  standards,  and  will  ensure  a  level 
playing  field.  This  could  widen  the  application  of  non-price  criteria  to  the  EU  budget, 
national  support  programmes  as  well  as  public  (and  in  some  circumstances,  private) 
procurement, to the benefit of energy-intensive industries. The steel and metals industries, 
as well  as  their downstream  industries  –  automotive, construction, machinery  – will be 
considered among the sectors of application and the competitiveness of the entire supply 
chains will also be assessed in the design of EU and national support programmes.  

To  enable  the  industries  investing  in  decarbonisation  to  reap  the  “green  premium”,  the 
Industrial Decarbonisation Accelerator Act will develop a voluntary label on the carbon 
intensity  of  industrial  products,  while  avoiding  duplication,  based  on  a  simple 
methodology with ETS data and building on the CBAM methodology. This should be the 
basis for further engagement with international work on measuring carbon intensity. In the 
interest  of  speed,  the  Commission  will  start  with  steel  in  2025.  This  will  be  based  on 
existing reporting from industry, or, where available, common methodology. 

In  parallel,  the  Commission  will  continue  working  on  developing  comprehensive  life-
cycle  assessments  to  improve  the  sustainability  of  products.  Regarding  steel,  the 
the  Industrial 
Ecodesign  for  Sustainable  Product  Regulation  will  complement 
Decarbonisation  Accelerator  Act’s  label  by  developing  requirements  for  products  with 
high  steel  content  and  add  relevant  environmental  criteria  beyond  the  carbon  footprint. 
This would allow consumers to see the environmental footprint of relevant products. 

Derisking high investment costs projects 

Acting on all the above barriers will  already  help increase the business  case. However, 
both public and private support to investments is necessary to ensure the transition, boost 
competitiveness, and ensure value chain resilience. This is required to address the scissors 
effect  linked  to  global  overcapacity  often  triggered  by  unfair  trading  practices,  and  to 
higher energy costs than most international competitors. In certain cases, such as nickel, 
price  fluctuations  driven  by  the  influence  of  geopolitical  competitors,  pose  a  threat  to 
investment  security.  In  order  to  prevent  this  and  to  ensure  that  the  European  industry 
benefits  from  sustainably  produced  critical  raw  materials,  we  will  pursue  the 
implementation  of  the  relevant  provisions  of  the  Critical  Raw  Materials  Act  and  work 
closely together with the third partner countries to implement the ESG related pillar from 
our Strategic Partnerships on raw materials value chains. We will continue the joint work 
in international fora such as G7 on promoting economic security standards for CRM, and 
nickel in particular.  

High capital costs are  often combined with significantly higher operating costs for 
low carbon production processes and clean energy. According to industry estimates, the 
annual financial needs to decarbonise the steel industry are estimated at EUR 5.2 billion 

15 

 
for capital expenditures and EUR 9 billion for operational expenditures until 203033. For 
the  non-ferrous  metals,  the  aluminium  industry  estimates  annual  investment  needs  of 
approximately EUR 1.3 billion until 2050 to decarbonise the sector, while for copper this 
corresponds to approximately EUR 211.5 million until 2050. Most of these projects are 
not likely to be economically feasible in the current environment and would require public 
funding to overcome technological and environmental externalities. 

The EU has already been quite active in supporting such projects. From October 2022 
to February 2025, the Commission approved close to EUR 9 billion of State aid for 10 
individual  steel  decarbonisation  projects.  Several  steel  decarbonisation  projects  also 
received support through the EU Innovation Fund. Further projects received support based 
on decarbonisation support schemes open to all energy-intensive sectors. The Commission 
has approved a number of such industrial decarbonisation support schemes including in 
the  form  of  carbon  contracts  for  difference34  for  several  Member  States  and  the 
Commission  will  provide  guidance  on  how  such  type  of  support  schemes  can  best  be 
structured in line with State aid rules. Recent examples of approved schemes which will 
or can also benefit the steel industry are two Slovak schemes with a total budget of EUR 
1.1 billion, a EUR 550 million Italian scheme, a EUR 4 billion German scheme, a EUR 3 
billion French scheme, a EUR 2.7 billion Austrian scheme and a EUR 2.5 billion Czech 
scheme. Moreover, additional projects have been financed by the EU 35, including in view 
of increasing the efficiency in the use of raw materials and energy. 

To attract more private finance, additional public support will be required, from innovation 
to  scale-up  and  deployment,  while  maintaining  the  level  playing  field  across  the  single 
market.  

At the innovation stage, the Research Fund for Coal and Steel (RFCS) provides important 
funding for the steel sector, supporting the transition to clean steel and the overall industrial 
decarbonisation  of  the  sector.  The  Commission  will  launch  flagship  initiatives  which 
would  mobilise  EUR  150  million  in  2026  and  2027  and  could  also  contribute  to 
strengthening  the  European  defence  research  dimension  of  the  sector.  In  addition,  the 
Commission will propose an overall reform of the Research Fund for Coal and Steel, 
to  simplify  and  further  accelerate  investments  in  steel  research,  including  research  on 
defence applications. 

Furthermore, as announced in the Clean Industrial Deal, there will be a flagship Horizon 
Europe call of ca. EUR 600 million under the 2026-2027 work programme to support fit-
for-deployment projects, including in the steel and metals industry.  

This call will be complementing ongoing research efforts funded under Horizon Europe 
on decarbonisation including recycling technologies to improve the circularity of metals 
in the EU.  

The  European  Innovation  Centre  for  Industrial  Transformation  and  Emissions 
INCITE established under the EU Industrial Emissions Directive will accelerate the take-
up of green technologies for industrial transformation.  INCITE’s findings will be designed 

(33)  https://www.eurofer.eu/issues/climate-and-energy/maps-of-key-low-carbon-steel-projects  
(34)  in which support is paid per tonne of greenhouse gas avoided during the operation of a low-carbon plant 

after deduction of the carbon price 

(35)  e.g.  LIFE16  ENV/ES/000242  LIFE-2-ACID,  LIFE16  ENV/IT/000231  LIFE  4GreenSteel,  LIFE19 

CCM/IT/001334 LIFE HEATLEAP 

16 

 
 
to  inform  financial support and investment  decisions of public authorities, the financial 
sector and private investors. 

At scale-up stage, the Commission announced as part of the Clean Industrial Deal an 
Industrial  Decarbonisation  Bank  aiming  for  EUR  100  billion  in  funding  based  on 
available funds in the Innovation Fund, additional revenues resulting from parts of the ETS 
as well as the revision of InvestEU. The Commission will  launch a pilot auction with  EUR 
1  billion  on  the  decarbonisation  of  key  industrial  processes  across  various  sectors, 
including  steel  and  metals,  in  2025,  supporting  industrial  decarbonisation  and 
electrification  with  existing  resources  under  the  Innovation  Fund.  Member  States  are 
encouraged to combine support under the Innovation Fund with auctions-as-a-service.  

Across funding programmes, attention will be paid to simplifying funding conditions, in 
order to reduce the effort and expertise required to apply for public support. This will help 
small and medium-sized enterprises (SMEs) in the sector also have access to these funding 
programmes.  

Supporting concrete projects through the Critical Raw Materials Act 

Aluminium, copper and nickel, as well as many steel alloying elements, are at the same 
time critical raw materials. They therefore benefit from the provisions of the Critical Raw 
Materials  Act,  which  seeks  to  unlock  the  EU’s  raw  materials  potential  along  the  entire 
value chain, from exploration to extraction to processing to recycling. The Commission 
will announce the first round of selected Strategic Projects in March 2025, including 
for  aluminium,  copper  and  nickel,  in  the  EU  Member  States  and  partner  third 
countries.  These  will  benefit  from  streamlined  permitting  procedures,  and  the 
Commission  will  work  with  Member  States,  public  and  private  financial  institutions  to 
ensure access to funding for such projects, as well as to identify off-takers when relevant.  

Furthermore, the Commission seeks to increase the stability of raw materials markets, to 
prevent  excessive  price  fluctuations  that  could  put  European  projects  at  risk.  The 
demand/supply matchmaking aggregation platform to be launched this year could also 
benefit the base metals sectors, increasing business opportunities and providing additional 
long-term certainty for transactions.  

Working on regulatory simplification 

Furthermore,  the  steel  and  metals  sectors  are  among  the  most  extensively  regulated 
industrial  sectors  in  the  EU.  The  regulatory  burden  faced  by  such  companies  exercises 
important  pressures  on  their  resources,  taking  time  away  from  their  core  business 
objectives,  especially  for  SMEs.  Addressing  this  constraint  is  important  for  the 
competitiveness of the EU steel and metals sectors. On 26 February 2025, the Commission 
has adopted the first two new proposals, so-called Omnibus packages, of simplification 
measures that will cut red tape and simplify EU rules. Additional ones will be adopted this 
year.    

Actions: 

In  Q4  2025,  the  Commission  will  propose  as  part  of  the  Industrial 
Decarbonisation  Accelerator  Act  to  introduce  resilience  and  sustainability 
criteria to strengthen production of EU-made clean products. 

17 

 
In Q4/2025, the Commission will propose a reform of the Research Fund for 
Coal and Steel. 

In 2025, in view of the future Industrial Decarbonisation Bank, the Commission 
will launch a EUR 1 billion pilot auction supporting industrial decarbonisation 
and  electrification  of  key  industrial  processes  across  various  sectors,  using  a 
combination    of  existing  resources  under  the  Innovation  Fund,  thus  also 
facilitating  the  electrification  of  steel  and  metal  industrial  processes.  Member 
States  are  encouraged  to  combine  support  under  the  Innovation  Fund  with 
auctions-as-a-service. 

In 2026 and 2027 the Commission will launch flagship calls under the Research 
Fund for Coal and Steel. 

7.  WORKING TOGETHER ON IMPLEMENTATION FOR A FAIR TRANSITION   

Addressing competitiveness, social and decarbonisation challenges for the metals industry 
will require close and more intense interaction of all stakeholders. The Commission will 
continuously monitor the situation in the sector, its resilience and ongoing decarbonisation 
and of the possible policy adjustments needed, in dialogue with the sector, social partners 
and the co-legislators.  

The implementation of the  transition pathway for the metals sectors will provide a 
constant space for dialogue between the industry, trade unions and other stakeholders. The 
mandate  of  the  High-Level  Group  on  Energy-intensive  Industries  will  be  renewed  for 
another  4-year  period  to  enable  this  implementation.  It  will  provide  a  platform  for 
monitoring latest developments on issues linked to competitiveness and decarbonisation 
of the metal industry such as energy costs, skills needs and global overcapacities. 

The  steel  and  metals  sectors  are  indispensable  to  Europe’s  industrial  fabric,  to  our 
resilience, economic security, defence and social stability. The Commission calls on the 
European Parliament, the Council, and all relevant stakeholders to work together on the 
implementation  of  this  action  plan  to  ensure  we  maintain  and  enhance  production 
capacities in Europe and secure steady and reliable supply for our key industries, including 
defence.  

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