With the steel safeguard due to expire on 30 June 2026, the European Commission has promised to propose a replacement solution by the end of the year and to adjust the current safeguard as early as April, according to a provisional version of the steel action plan obtained by Agence Europe. This is due to be presented by the European Commission on Wednesday 19 March.
The steel industry has been arguing for several months that the safeguard measure, which sets a tariff quota on steel imports, is no longer appropriate for current flows. The Commission has heard this and plans to amend the regulations in force from 1 April. “The adjustments tighten the measure in those categories where necessary to maintain its effectiveness. In particular, the significant increase in imports combined with a decrease in demand in certain categories has been taken into account”, states the draft action plan.
As for carbon leakage, the Commission intends to deal with this largely through the Carbon Border Adjustment Mechanism (CBAM). Without specifying what this will be, the Commission assures that, by the end of 2025, it will propose a solution for exports of products subject to CBAM, which face unfair competition on international markets.
With regard to the biggest handicap facing European steel producers - energy prices - the Commission recalls the measures set out in the Affordable Energy Action Plan and proposes a number of ways in which energy-intensive sectors such as the steel industry can be helped even further. For example, it states that it is “consulting Member States on a State aid clean flexibility instrument based on PPAs (power purchase agreements) and industry committing to consume clean electricity”.
Cheaper electricity also means connecting energy-intensive industries to the grid, according to the Commission. It is therefore expected to publish, in the second quarter of 2025, a guidance document on the design of network tariffs in order to reduce tariffs for the metals sector and other energy-intensive industries. In addition, it is expected to publish guidance and recommendations to Member States on shortening wait times for grid connections.
See all the proposals in the steel action plan: https://aeur.eu/f/fzk (Original version in French by Léa Marchal)