Swedish steelmaker SSAB has announced a 6 billion euro plan to shift its production from coal-based methods to low carbon hydrogen, aiming to cut emissions from one of the hardest to decarbonize industries. The investment comes as EU policymakers debate changes to the Emissions Trading System that could reduce the financial incentives for early movers in clean industrial technology. Industrial groups including Heidelberg Materials and Rockwool warn that weakening the ETS could undermine the business case for electrification and carbon capture. Carbon prices currently sit around 80 euros per tonne, which analysts say is enough to make some low carbon technologies competitive. But proposed changes to the ETS, driven by political pressure from member states like Italy and Poland, could grant more free allowances and soften the price signal. SSAB and others argue that tinkering with the ETS will not fix the real competitiveness problems of high energy costs and infrastructure gaps.
