European steelmakers urge EU to protect ETS as 10 billion euro decarbonization investments continue

European steelmakers including Outokumpu, SSAB, and Salzgitter are calling on the EU to preserve the Emissions Trading System (ETS) and strengthen the Carbon Border Adjustment Mechanism (CBAM). They are collectively investing over 10 billion euros in low-emission steel production and warn that weakening the ETS would undermine investment certainty and penalize early movers in industrial decarbonization. The companies want the ETS linear reduction factor kept at 4.4 percent through 2035, the CBAM scope extended to steel-intensive downstream products, and ETS revenues reinvested in industrial decarbonization. They argue that high electricity costs and global overcapacity are bigger competitiveness threats than carbon pricing itself. The statement reflects growing pressure from heavy industry to keep the policy framework stable as capital commitments grow.