The European steel sector reacted with disappointment after the EU Parliament could not agree on creating a CO2 emissions rights market. Such a system would help fund decarbonisation investments and protect roughly 30,000 direct jobs. Industry group Eurofer described the lack of progress as not favorable for climate goals or the green transition. They pointed to ongoing investments, including several huge projects, that would be supported by a robust emissions trading framework. One notable example is the multi‑billion euro commitment by ArcelorMittal in Asturias.
In the Environment Committee, Parliament members had proposed phasing out free CO2 allowances from 2036 to 2030, a move the steel sector believed would spur faster decarbonisation. Yet the General Assembly failed to reach a consensus on extending those deadlines, leaving the plan in limbo. The stalemate pushes the decision to adjust the carbon cap back to square one and delays critical actions for the large Asturian industry. This delay means two pivotal steps for the regional steel sector remain unresolved.
Eurofer stressed that the parliamentary vote was disappointing because many MEPs had earlier expressed support for measures that would aid the sector’s transition and preserve tens of thousands of jobs. The group urged renewed negotiations among Members of the European Parliament to reach a compromise that would support sustainable decarbonisation and prevent carbon leakage through border measures affecting exports. Eurofer highlighted the sector’s ambition, including 60 projects such as green steel plants planned in Gijón and Avilés, aimed at cutting emissions by 55 percent by 2030 and pursuing climate neutrality by 2050.
Meanwhile, tensions grew among Asturian business leaders. FADE representatives argued in favor of a calibrated environmental tariff that protects compliant firms and warns of the consequences of an abrupt end to emissions rights for the regional industry. They underscored the need for a gradual, well‑planned energy transition that does not jeopardise the regional economy. The head of FADE emphasized that the issue demands a timely resolution to avoid excessive risk to local jobs and investment.
The Principality’s Minister of Industry, Henry Fernandez, echoed the sentiment that any energy transition should be digestible for the sector. He called for a careful pace and broad consensus on the timing and scope of changes, stressing that acceleration must be thoroughly analyzed and broadly agreed before moving forward.
SEPE demands refund of ERTE money from Arcelor
The State Public Employment Agency (SEPE) has requested ArcelorMittal to reimburse all benefits paid under the ERTE scheme to workers in 2020. The CC OO branch of ArcelorMittal’s Asturian plants disclosed the development yesterday. The National Supreme Court previously upheld the company’s provisional ERTE filing, confirming a ruling that Federal Court had found problematic. In response, CC OO stated that SEPE is seeking full execution of the sentence, which would mean reinstating workers and recovering the full salary and unemployment days that were drawn down during the period in question.