The EU steel industry is at a competitive disadvantage to other producing regions with regard to energy costs, as recently recognised in the Draghi Report on competitiveness.

These high costs are due to the impact of fossil-fuels on electricity prices, as well as regulatory costs such as network tariffs, capacity mechanisms and renewable levies. If unaddressed, this will not only put the current EU steel production at risk but also prevent the European steel sector from being able to decarbonise, since access to clean electricity remains central to the green transition. As such, we welcome and look forward to the adoption and concrete implementation of the “EU Action Plan to Bring Down Energy Prices” for civil society, companies, and industries.

Hydrogen has a key role to play, and we are concerned that the policy framework governing hydrogen adopted so far will not deliver affordable hydrogen at scale with the industry’s needs. Urgent measures are needed to reduce energy costs in order for the green transition to become a reality.