European Parliament committee backs incentives for green steel in the automotive industry
By Google News Motors ·
The European Parliament’s Committee on the Environment has backed the introduction of a dedicated low-carbon steel credit under the EU CO₂ emission standards for cars and vans. This is stated in a press release from the European Steel Association (EUROFER), which welcomed the decision.
European steelmakers are already investing billions of euros in decarbonization. Around 60 projects are currently planned or under way, which will make it possible to produce up to 30 million tonnes of green steel. However, to support these large-scale investments, the industry needs a clear market signal and predictable demand.
The introduction of a low-carbon steel credit will encourage carmakers to use environmentally friendly material. This will help create stable demand for green steel while supporting industrial production, preserving quality jobs and attracting additional investment in Europe.
“Low-carbon steel made in Europe should be used in European cars. A dedicated steel credit will help turn decarbonization ambitions into real investments and jobs. This is how we will strengthen two strategic EU industries and cut emissions,” said EUROFER Director General Axel Eggert.
As GMK Center reported earlier, back in 2024 a study by the pan-European organization Transport & Environment (T&E) showed that the automotive industry could become a leading market for low-carbon steel in Europe if lawmakers set the appropriate requirements.
According to the analysis, based on research by consulting firm Ricardo, steel produced using green hydrogen and electric arc furnaces or scrap could reduce carbon emissions from car production in Europe by 6.9 million tonnes in 2030. If carmakers replace 40% of their steel with clean steel (with less than 400 kg of CO2 emissions per tonne), this would add only €57 to the cost of an electric vehicle in 2030.
Originally published by Google News Motors
