Europe’s Top Steelmakers Demand ETS Reform to Avoid Industrial Decline

Event summary

  • ArcelorMittal, thyssenkrupp Steel, and voestalpine—representing 60% of Europe’s integrated steel production—call for urgent EU ETS reform to prevent a 30–40% decline in steel-intensive manufacturing.
  • The trio warns that without adjustments, ETS costs could rise by 50% by the early 2030s, risking 5 million jobs across the value chain.
  • Key enablers for economic decarbonization, such as affordable green hydrogen and carbon capture storage, remain insufficiently developed.
  • The companies propose a temporary pause in ETS cost escalation until decarbonization becomes economically viable.

The big picture

Europe’s largest steelmakers are warning that the current EU Emissions Trading System (ETS) framework risks crippling the continent’s industrial backbone. Their joint call for reform highlights a critical tension between climate ambitions and economic viability, particularly as global competition intensifies. The stakes are high: without policy adjustments, Europe could face a 30–40% decline in steel-intensive manufacturing, jeopardizing millions of jobs and undermining the EU’s Industrial Accelerator Act goals.

What we're watching

Regulatory Response
Whether EU policymakers will heed the call for ETS reform, balancing climate goals with industrial competitiveness.
Decarbonization Timing
The pace at which key enablers like green hydrogen and carbon capture storage scale up to support economically viable decarbonization.
Competitive Shifts
How rising ETS costs could accelerate offshoring of steel-intensive manufacturing, further weakening Europe’s industrial base.