Major European steelmakers including Salzgitter and SSAB have warned EU policymakers not to weaken the bloc's carbon market. In a joint statement, they argued that dampening the EU Emissions Trading System would erode investment certainty and penalize companies that decarbonize faster. The warning comes ahead of a key reform expected on July 15, 2025, which will adjust the ETS to align with a new 2040 climate target of 90% emission reductions from 1990 levels. The steelmakers specifically urged the European Commission to keep the annual emission reduction rate at 4.4% through at least 2035 and avoid measures that would artificially increase allowance supply. They also called for maintaining the phase-out of free allowances in parallel with the Carbon Border Adjustment Mechanism (CBAM). The group argued that high electricity costs from fossil fuel dependencies and global steel overcapacity, not carbon prices, are the main competitive pressures. The statement reflects a significant position from heavy industry: these companies want a strong carbon price signal combined with a fully implemented CBAM to create a level playing field. They also stressed that ETS revenues should be channeled back into industrial decarbonization, particularly for CBAM sectors. This signals that at least some major emitters see carbon pricing as a tool for investment certainty rather than just a cost.
