The European steel industry has called upon the plenary of European Parliament to fix the disruptive vote on the Emissions Trading System & Carbon Border Adjustment Mechanism cast by its Environment Committee as the outcome endangers EUR 31 billion investments needed for deploying the 60 low carbon projects the European steel industry has in the pipeline, as well as EUR45 billion in exports value and 30,000 jobs. European Steel Association EUROFER Director General Mr Axel Eggert said “The Environment Committee missed the opportunity to develop an ambitious framework that would both allow deep cuts in CO2 emissions and secure manufacturing and jobs in Europe. In their current form, these extreme proposals approved by a tight majority risk disrupting all this without any additional gains for the climate if emissions are just leaked abroad.”Mr Eggert stressed “Our industry has very ambitious plans to reduce emissions by more than one third by 2030. This would be a truly new industrial revolution requiring massive capital investment of over EUR 30 billion and decarbonized energy and hydrogen in unprecedented quantity. Climate legislation needs to accompany this transition with balanced measures and realistic timelines rather than impose disproportionate costs that overburden companies before they can even implement their Decarbonization plans. We call on the Members of the European Parliament to seize the opportunity to shape a regulatory framework that helps industry translate these ambitious plans into reality and make the EU the world leader of green steel.”The decision to reduce free allocation by 40% for transitioning plants would be impossible to implement in just three years. In addition, an abrupt ETS free allocation phase out of CBAM-affected sectors deliberately risks endangering the viability of these industries, because there is no solution offered for exports competing with production from third countries that do not have the same stringent climate legislation as in the EU. Other proposals on rebasing and on the Market Stability Reserve will also contribute towards fuelling carbon and electricity price increases, inflation and financial speculation by withdrawing millions of allowances from the system without any benefit for the achievement of the EU’s 2030 climate objective.