Synopsis: The European Steel Association (EUROFER) is urging the EU-US Summit to address the existential challenges faced by the global steel industry. Excessive carbon-intensive capacity, surpassing 600 million tonnes, threatens the sector's future. The summit should establish an international binding agreement modeled after the Global Arrangement on Sustainable Steel and Aluminium (GASSA). Only a united approach can combat the growing challenges in excess capacity and decarbonization. If uncontrolled, new capacity expansion will surpass EU steel industry emissions by 2050, making emission targets unattainable. EUROFER calls for immediate action to secure the industry's future and reduce global CO2 emissions.Article:The European Steel Association (EUROFER) is emphasizing the need for a robust international agreement to combat the critical challenges facing the global steel industry. In a rapidly changing landscape, non-market excess capacity and carbon intensity have emerged as existential threats to the sector.Excessive non-market driven capacity, characterized by carbon intensity, has now soared to a staggering 600 million tonnes. This surge in capacity is largely concentrated in regions such as Asia, the Middle East, and North Africa. Moreover, the expansion of new non-market capacity is predominantly focused on traditional coal-based furnaces, which are highly carbon-intensive.A concerning development is the projection of another 150 million tonnes of steel capacity becoming operational by 2026, a worrisome prospect given the weak global steel demand. This capacity expansion is set to lock in CO2 emissions for decades and could result in more emissions than the entire EU steel industry combined, erasing the emissions reduction efforts of the EU steel industry up to 2050 within just three years.The global steel industry, responsible for over 10% of global CO2 emissions, needs to undergo substantial decarbonization to achieve the UN climate target of keeping the global temperature increase below 1.5 or 2 degrees Celsius. However, the EU steel production contributes only a fraction (6%) of total global steel emissions.The proposed Global Arrangement on Sustainable Steel and Aluminium (GASSA) is seen as a unique opportunity to bring about significant emission reductions in the global steel industry. It offers a collective vision for transatlantic partners and remains open to other like-minded countries with similar trade policies and measures.The EU steel industry is currently in a vulnerable position, with a loss of approximately 30 million tonnes of sales in the EU and foreign markets over the past decade. To ensure a transition towards carbon neutrality, EUROFER underlines the need for an effective GASSA that aligns with the EU's strategic autonomy goals.While traditional trade instruments serve their purpose, addressing global non-market excess capacity requires a more comprehensive approach. The effectiveness of the Carbon Border Adjustment Mechanism (CBMA) is yet to be proven in ensuring a level playing field.In conclusion, a strong EU-US Summit is essential to tackle the pressing issues of carbon-intensive excess capacity and decarbonization. Only a united, international approach can secure the future of the steel industry and mitigate the growing threat of excessive carbon emissions.
Synopsis: The European Steel Association (EUROFER) is urging the EU-US Summit to address the existential challenges faced by the global steel industry. Excessive carbon-intensive capacity, surpassing 600 million tonnes, threatens the sector's future. The summit should establish an international binding agreement modeled after the Global Arrangement on Sustainable Steel and Aluminium (GASSA). Only a united approach can combat the growing challenges in excess capacity and decarbonization. If uncontrolled, new capacity expansion will surpass EU steel industry emissions by 2050, making emission targets unattainable. EUROFER calls for immediate action to secure the industry's future and reduce global CO2 emissions.Article:The European Steel Association (EUROFER) is emphasizing the need for a robust international agreement to combat the critical challenges facing the global steel industry. In a rapidly changing landscape, non-market excess capacity and carbon intensity have emerged as existential threats to the sector.Excessive non-market driven capacity, characterized by carbon intensity, has now soared to a staggering 600 million tonnes. This surge in capacity is largely concentrated in regions such as Asia, the Middle East, and North Africa. Moreover, the expansion of new non-market capacity is predominantly focused on traditional coal-based furnaces, which are highly carbon-intensive.A concerning development is the projection of another 150 million tonnes of steel capacity becoming operational by 2026, a worrisome prospect given the weak global steel demand. This capacity expansion is set to lock in CO2 emissions for decades and could result in more emissions than the entire EU steel industry combined, erasing the emissions reduction efforts of the EU steel industry up to 2050 within just three years.The global steel industry, responsible for over 10% of global CO2 emissions, needs to undergo substantial decarbonization to achieve the UN climate target of keeping the global temperature increase below 1.5 or 2 degrees Celsius. However, the EU steel production contributes only a fraction (6%) of total global steel emissions.The proposed Global Arrangement on Sustainable Steel and Aluminium (GASSA) is seen as a unique opportunity to bring about significant emission reductions in the global steel industry. It offers a collective vision for transatlantic partners and remains open to other like-minded countries with similar trade policies and measures.The EU steel industry is currently in a vulnerable position, with a loss of approximately 30 million tonnes of sales in the EU and foreign markets over the past decade. To ensure a transition towards carbon neutrality, EUROFER underlines the need for an effective GASSA that aligns with the EU's strategic autonomy goals.While traditional trade instruments serve their purpose, addressing global non-market excess capacity requires a more comprehensive approach. The effectiveness of the Carbon Border Adjustment Mechanism (CBMA) is yet to be proven in ensuring a level playing field.In conclusion, a strong EU-US Summit is essential to tackle the pressing issues of carbon-intensive excess capacity and decarbonization. Only a united, international approach can secure the future of the steel industry and mitigate the growing threat of excessive carbon emissions.
