Production at European steel mills could suffer significantly after 2020. That is when the fourth phase of the European program to reduce carbon emissions kicks in, steelmakers' association Eurofer said during its annual meeting in Brussels, attended by Kallanish. The association continues to strive for reform of the Emissions Trading Scheme (ETS)  

Currently authorities are discussing the revision of the existing ETS for carbon allowances. As it stands however the increase in costs after 2020 could be unbearable for steelmakers and would stop investments in new technologies to limit emissions, Eurofer added.

During a panel discussion, Andreas Goss, ceo of thyssenkrupp steel Europe said that European steelmakers are in favour of fighting Co2 emissions. They need however to face the competition of imports from areas where the issue is not central. “Europe risks finding itself with very low steel production, while other [... steel-] producing countries are less concerned,” Goss said.

Eurofer director general Axel Eggert calculated that, with the current system, 35% of carbon allowances for mills will have to. be bought in the open market by 2030, impacting on the costs of steelmaking. “The commission is still not taking into account a lot of our requests to reform the ETS system,” the association noted.