ArcelorMittal, Two Others, Say European Manufacturing Imperiled Without Changes to Emissions Trading System
06/17/2026 - Three European steelmakers on Wednesday called for reforms to the European Union’s emissions trading system, warning that without changes, the EU could face a 30% to 40% decline in steel-intensive manufacturing.
In a joint statement, ArcelorMittal Europe, thyssenkrupp Steel, and voestalpine said that under the current arrangement, the cost of producing steel in the EU is expected to increase by around 50% by the early 2030s.
“With steel-intensive imports not subject to an equivalent carbon cost, and EU steel exports receiving no rebate to recover the carbon cost, the implications of the sharp increase in ETS costs will be profound for European steelmaking and the entire value chain,” they wrote.
“Such an outcome would run counter to the EU’s ambition, which is set out in the Industrial Accelerator Act, to increase manufacturing’s share of GDP to 20% and would weaken Europe’s economic resilience at a time of intensifying global competition significantly,” they added.
ArcelorMittal executive chairman Lakshmi Mittal said the EU must incentivize decarbonization without compromising competitiveness.
“It is not an easy problem to solve, but reform of the ETS is essential and we applaud Europe’s policymakers for putting the topic back on the agenda. The choice they face is not between climate ambition and competitiveness. The choice is between a climate strategy that strengthens Europe’s resilience and economic security, and one that hollows it out.”
However, not all European steel producers agree with the call for reform.
Stefan Rauber, management board chairman of Stahl-Holding-Saar GmbH & Co. KGaA, said the emissions trading system was developed and implemented through 20 years of policy action. To pursue changes now is unfair, he said.
“Every energy-intensive player in Europe had roughly 20 years to make up their minds how to solve the problem,” he said, responding to a question during a presentation at the 2026 Global Steel Dynamics Forum in New York City.
“(They) had the same time as we had. (They) had the same chances as we had. (They) had the same basis as we had. We do right now what politicians have asked for through their legislation. And now others who just didn’t do that want to become healthier, and we should pay for it? That’s just not fair.”
Rauber company is undertaking one of Europe’s largest decarbonization initiatives, building a DRI plant and two electric arc furnaces to replace blast furnaces and converters. The project represents an EUR2.6 billion investment.
“With steel-intensive imports not subject to an equivalent carbon cost, and EU steel exports receiving no rebate to recover the carbon cost, the implications of the sharp increase in ETS costs will be profound for European steelmaking and the entire value chain,” they wrote.
“Such an outcome would run counter to the EU’s ambition, which is set out in the Industrial Accelerator Act, to increase manufacturing’s share of GDP to 20% and would weaken Europe’s economic resilience at a time of intensifying global competition significantly,” they added.
ArcelorMittal executive chairman Lakshmi Mittal said the EU must incentivize decarbonization without compromising competitiveness.
“It is not an easy problem to solve, but reform of the ETS is essential and we applaud Europe’s policymakers for putting the topic back on the agenda. The choice they face is not between climate ambition and competitiveness. The choice is between a climate strategy that strengthens Europe’s resilience and economic security, and one that hollows it out.”
However, not all European steel producers agree with the call for reform.
Stefan Rauber, management board chairman of Stahl-Holding-Saar GmbH & Co. KGaA, said the emissions trading system was developed and implemented through 20 years of policy action. To pursue changes now is unfair, he said.
“Every energy-intensive player in Europe had roughly 20 years to make up their minds how to solve the problem,” he said, responding to a question during a presentation at the 2026 Global Steel Dynamics Forum in New York City.
“(They) had the same time as we had. (They) had the same chances as we had. (They) had the same basis as we had. We do right now what politicians have asked for through their legislation. And now others who just didn’t do that want to become healthier, and we should pay for it? That’s just not fair.”
Rauber company is undertaking one of Europe’s largest decarbonization initiatives, building a DRI plant and two electric arc furnaces to replace blast furnaces and converters. The project represents an EUR2.6 billion investment.
