BANKS DODGY DEALS CAMPAIGNS
Sections
Banks Dodgy Deals Campaigns
Our campaigns
Banks and Climate
Banks and Human Rights
Banks and Nature
Our projects
Tracking the NZBA
Banks and Russia
Banks and Steel
Tracking the Equator Principles
Tracking the PRBs
Find a Better Bank
Banks and the OECD Guidelines
Media
News Publications
Raiffeisen Out! Bank.Green End Coal Finance Plastic Banks Tracker Defund TotalEnergies Financial Exclusions Tracker Equator-Complaints.Org Don't Buy into Occupation Banks & Biodiversity Forests & Finance Drop JBS StopEACOP Fossil-Free Finance
BankTrack
About BankTrack Organisation Our team Our board Our annual reports Funding and finances Guiding principles Our history BankTrack in the media Team up with us Our privacy policy Donate Visit us
Successes Contact BankTrack
Donate Mailing list Facebook Twitter Linkedin Login
Home › Partner news ›
Partner News

Civil society charts clear pathway to green steel ahead of EU steel and metals action plan

2025-03-19 | Brussels
By: Beyond Fossil Fuels & E3G
Contact:

Catherine Joppart, E3G, catherine.joppart@e3g.org,

+32 (0)491 64 37 35

Metallurgist working by the blast furnaces in Třinec Iron and Steel Works, 2007. Photo: Třinecké železárny via Wikimedia Commons
2025-03-19 | Brussels
By: Beyond Fossil Fuels & E3G
Contact:

Catherine Joppart, E3G, catherine.joppart@e3g.org,

+32 (0)491 64 37 35

Read the report here

EU policymakers must galvanise a shift away from coal-based steelmaking to boost industrial competitiveness and guarantee a future for over two million workers, according to research launched today and endorsed by 28 civil society organisations.(1)(2)

The research titled “The State of the European Steel Transition”highlights that the industry is at a crossroads but that “there is a clear pathway to green steel” and this year is critical for advancing policies to drive the EU steel industry’s transition. 

This publication coincides with the release of the Commission’s Steel and Metals Action Plan (SMAP), itself designed to ensure that “clean steel production is commercially viable” but which was drafted without input from green or environmental NGOs, leaving the process vulnerable to the unbalanced influence of pro-fossil industry. 

The EU steel industry’s transition policies should include phasing out fossil fuel-based steel, scaling up green hydrogen and renewable-powered production, strengthening circularity measures, and ensuring a just transition encompassing social protection for the industry’s workers.

Europe is currently a front-runner in near-zero emission steel innovation, but it faces intensifying competition from China and the Middle East and North Africa (MENA) region. “By investing in green steel technologies today, the EU will secure jobs and create resilience throughout the industrial value chain, as well as maintaining its early leadership in developing hydrogen-based direct reduced iron (DRI) and electric arc furnace (EAF) scrap-based steelmaking”, reads an extract from the report.

This research provides eight key policy recommendations designed to clean up Europe’s steel sector, which accounts for five percent of the EU’s total carbon emissions.(3)

Top of the list is to end permitting for or investment in new-build or existing coal-fired blast furnaces. The European Commission must also insist on “timely, ambitious and transparent” transformation plans for existing facilities, while every effort must be made to ensure the new wave of hydrogen-based green steel projects remains on track. 

Notes to editors:

(1) Quotes from some of the authors of the report (in alphabetical order):

Caroline Ashley, Executive Director at SteelWatch, said: “EU steel production still relies on 47 coal-based blast furnaces, driving 133 million tonnes of CO2 emissions each year. Retirement dates have been announced for 32 furnaces — a step forward, but the transition remains shaky. Policymakers must ensure all EU steelmakers commit to no further investment in coal-based infrastructure and set clear retirement dates and just transition plans for every site. Phasing out all 47 furnaces must be central to the EU’s industrial transition.”

Patrick ten Brink, Secretary General at the European Environmental Bureau, said: “Steel holds deep symbolic value for the EU. The European community was founded on a coal and steel union to secure peace; now, with that same spirit, we must forge a safe, climate-neutral future for all. That means leaving coal behind and championing circularity and renewables to drive the steel sector’s transformation. The tools are in our hands: robust standards, smart procurement, and rapid electrification powered by cheap renewable energy. The EU must rise to the challenge and act as a true ‘Clean Steel Union’ in investment decisions – otherwise, the new industrial agenda risks becoming a race to the bottom on national subsidies.”

Jen Carson, Head of Heavy Industry, Climate Group, said: “The private sector has a critical role to play in scaling up the demand for green steel. Sectors such as construction, automotive, and manufacturing must commit to buying low emission steel to create a viable market for sustainable production. Carmakers, in particular, have a major role to play as steel accounts for a substantial portion of vehicle manufacturing emissions. Despite progress from industry leaders, we need to see more carmakers and steel buyers stepping up to make meaningful pledges to support the transition.”

Julia Hovenier, Banks and Steel Campaign Lead at BankTrack said: “European financial institutions were the first movers on ending coal finance after the Paris Agreement. With the right signals from Brussels, they can keep their first-mover status, and mitigate global climate risk by rapidly increasing finance for a just transition to fossil free steel. But regulatory certainty is key to making this happen.”

Filip Krenek, EUROPEUM Institute for European Policy, said: “Circularity will be key to Europe’s industrial future. Scaling up steel recycling and scrap-based production can slash emissions and reduce reliance on virgin iron, but weak collection systems, missing markets for low-carbon materials, and regulatory gaps are slowing progress. With new Trump tariffs and China’s steel overcapacity squeezing European producers, the question is whether Europe will lead in low-carbon manufacturing or lose ground to global competitors, making it even more urgent to build a resilient, competitive market for green steel.”

Kamil Laskowski, Senior Analyst and Industrial Project Leader at Instrat, Poland, said: “Europe’s steel transition must include Central and Eastern Europe, which faces particular challenges such as CBAM circumvention risks, limited decarbonization plans, weak state support, and market dominance by multinational producers who are reluctant to climate policies. The EU must tailor policies to regional needs and support national steel production.”

Johanna Lehne, Associate Director for Clean Economy, E3G said: “In the face of tariffs and heightened geopolitical tensions, there will be a temptation to reach for short-term crisis support and more assertive trade defence policies to shore up the European steel sector. While important, these moves will not suffice to secure a long-term future for the sector in Europe. We need to see concerted industrial policy to accelerate the decarbonisation of the sector. By investing in a new generation of near-zero emissions steelmaking, relying on green hydrogen and renewable electricity, the EU can secure jobs and resilience throughout the industrial value chain.” 

Chiara Martinelli, Director at Climate Action Network Europe, said: “We can’t keep pouring water into a leaking bucket. The steel companies that are not ready to take the transformation seriously should not be getting the taxpayers’ money either. Every euro of public funds should drive a fair transition for workers and communities, cut the reliance on fossil fuels and accelerate renewables-based and circular steel production. With fossil-based steel assets aging, the time to act is now. We need strong social and environmental conditions to ensure public investment delivers lasting benefits for people, not just for the polluters.”

Cynthia Rocamora, Reclaim Finance, said: “While state aid and public financing have provided critical early-stage support, private financial institutions must step up their engagement to push for fossil free steel. Banks, insurers, and investors need to better integrate climate risk into their decision-making processes, and prioritise investments in fossil free steel over high-emissions alternatives.”

Carlota Ruiz Bautista, Steel and Industry Campaigner at Beyond Fossil Fuels, said: “The EU was built on coal and steel; now it must forge its future from fossil-free industries. Decisions made today will largely determine whether Europe leads or loses out in the green industrial transition. Ambitious investments in renewable energy and grid infrastructure are essential to decarbonise steel production and secure a thriving green steel industry for generations to come. Policymakers must ensure this transition is fair for workers and communities, and delivers benefits for society as a whole.”

(2) The signatories to the publication ‘The State of the European Steel Transition’ are:

  1. BankTrack
  2. Bellona Deutschland
  3. Beyond Fossil Fuels (BFF)
  4. CAN Europe
  5. Carbon Market Watch
  6. Coal Free Finland
  7. E3G
  8. Ecologistas en acción
  9. Energy Policy Group (EPG)
  10. EPICO
  11. European Environmental Bureau (EEB)
  12. EUROPEUM Institute for European Policy 
  13. Germanwatch
  14. Instituto Internacional de Derecho y Medio Ambiente (IIDMA)
  15. Instrat
  16. Natuur&Milieu
  17. Nordic Center for Sustainable Finance
  18. Opportunity Green
  19. Reclaim Finance
  20. Sandbag
  21. Solutions for our Climate
  22. SteelWatch
  23. SteelZero
  24. Stockholm Environment Institute (SEI)
  25. The Sunrise Project
  26. Transport & Environment (T&E)
  27. Urgewald
  28. WWF European Policy Office

(3) These figures refer to the 2023 emissions, and come from the Sandbag report released in October 2024. Original figures come from IEA. Iron and Steel Technology Roadmap.

Sections
Banks Dodgy Deals Campaigns
Our campaigns
Banks and Climate Banks and Human Rights Banks and Nature
Our projects
Tracking the NZBA Banks and Russia Banks and Steel Tracking the Equator Principles Tracking the PRBs Find a Better Bank Banks and the OECD Guidelines
Media
News Publications
Raiffeisen Out! Bank.Green End Coal Finance Plastic Banks Tracker Defund TotalEnergies Financial Exclusions Tracker Equator-Complaints.Org Don't Buy into Occupation Banks & Biodiversity Forests & Finance Drop JBS StopEACOP Fossil-Free Finance
BankTrack
About BankTrack Organisation Our team Our board Our annual reports Funding and finances Guiding principles Our history BankTrack in the media Team up with us Our privacy policy Donate Visit us
Successes Contact BankTrack
Vismarkt 15
6511 VJ Nijmegen
The Netherlands
Contact@banktrack.org
Donate Mailing list Facebook Twitter Linkedin
©2023 BankTrack
BankTrack is a registered charity in the Netherlands (ANBI) - RSIN 813874658
Find our privacy policy here

Stay up to date

Sign up now for all BankTrack's news


Make a comment

Your comment will be reviewed, before being posted