Three of Europe's largest steelmakers, ArcelorMittal Nippon Steel, Thyssenkrupp, and Voestalpine, jointly criticized the EU Emissions Trading System (EU ETS) in a June 2026 declaration. They argue the rapid phase-out of free carbon allowances is exposing mills to high compliance costs before green hydrogen or carbon capture is ready at scale. The companies also point to uneven competition from carbon-heavy imports and volatile allowance prices driven by financial speculators. The steel giants warn the current policy risks carbon leakage, where investment leaves Europe and higher-emission imports replace local production. They urge the European Commission to pause the rise in ETS costs, introduce a temporary price ceiling on allowances, and slow the phase-out of industry protections. The core tension is between regulatory deadlines and the multi-year engineering timelines needed for hydrogen-based direct reduced iron (DRI) and carbon capture retrofits.
