Transport & Environment (T&E) published a position paper on low-carbon steel credits within the EU car CO2 standards review. The mechanism would let automakers earn credits for using green steel, creating a lead market for fossil-free primary steel produced in Europe. T&E argues the system must be designed carefully to avoid rewarding weak transitional pathways and to ensure real emission reductions. The paper recommends that from 2035 only fossil-free primary steel should qualify, with a limited transition phase from 2030 capped at 3% of carmakers' CO2 targets. T&E also calls for strict eligibility definitions by end of 2026, a focus on primary steel combined with post-consumer scrap, and anchoring the lead market in Europe with limited imported green iron allowed after 2035. The paper claims enough low-carbon steel will be available in Europe by 2030 to cover most automotive demand.
