With the publication of the EU's Industrial Accelerator Act (IAA), Andrew Forth, Head of Policy and Advocacy at Climate Group, comments:
"Requiring low-carbon public procurement is one of the most powerful tools to help move lower emission steel from pilot projects to commercial reality. But it only works if there is clarity on what counts as lower emission steel – one based on full lifecycle emissions, with producer’s claims independently verified.
"The IAA sets out a framework for classifying steel by emissions intensity, and we welcome the recognition that a labelling scheme is needed. But the detail matters enormously. A voluntary classification system will not provide the certainty that producers and buyers need to make the investment decisions that actually cut emissions at scale.
We need a mandatory, harmonised EU definition of low-carbon steel – established without delay – so that public procurement and private investment reward cleaner production. Without it, Europe risks confusion, stalled investment and losing ground to competitors."
Andrew Forth, Head of Policy and Advocacy ,The Act rightly enables the Commission to develop classification systems for steel based on emissions intensity. But an enabling power alone leaves too much to chance – and a classification system is not the same as a label. To drive real investment, producers and buyers need a trusted, mandatory EU green steel label, applied consistently across all Member States.
A mandatory EU definition of what counts as low-carbon steel is not a nice-to-have. It’s the foundation that makes everything else work – investor confidence, scaled demand, and a future for Europe’s industrial transition that delivers real emissions reductions. The EU must now move quickly to put this definition and label in place."
For additional comment and interview requests, please get in touch with Alexandra Brandt Corstius at abrandtcorstius@climategroup.org