ArcelorMittal and European steelmakers call for EU ETS cost pause as green steel conditions lag

ArcelorMittal, Thyssenkrupp Steel, and Voestalpine are jointly asking the European Commission to pause the rising cost of carbon under the EU Emissions Trading System. They argue that CO2 bills for European steel production could jump 50% by the early 2030s, putting up to 5 million jobs at risk across the supply chain. The companies say green electricity, hydrogen, CO2 storage, and markets for low-carbon steel are not yet available at scale to justify the current ETS trajectory. The appeal comes as the EU reviews its ETS to align with 2040 climate targets. While the Carbon Border Adjustment Mechanism was designed to level the playing field with imports, steelmakers claim it is not enough. In Belgium, ArcelorMittal has delayed a planned 2 billion euro green investment at its Ghent site indefinitely, citing unfavorable economic conditions. The outcome of this policy debate will directly affect the pace of industrial decarbonization in Europe.