Takeaways

• The European Commission has removed a proposed EU steel emissions label from its upcoming Industrial Accelerator Act, according to a draft seen by Reuters.
• The label was intended to help promote low-carbon steel and make greener products easier for buyers to identify.
• The draft law still proposes that at least 25% of steel used in public procurement must be low-carbon to support demand for green steel.

The European Union has removed plans to introduce an EU steel emissions label from its upcoming “made in Europe law”, according to a draft proposal reviewed by Reuters. The change comes just before the expected release of the legislation, formally known as the Industrial Accelerator Act.

The label had initially been designed to highlight the emissions intensity of steel products and help promote low-carbon steel across the European market. Policymakers hoped it would strengthen demand for green steel and support the EU’s wider efforts to revive its industrial base while reducing carbon emissions.

However, the latest draft of the Industrial Accelerator Act shows that the emissions label has been removed. Earlier drafts included a voluntary system that would allow companies to display the carbon intensity of their steel using a common calculation method.

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Officials inside the European Commission reportedly raised concerns that adding another label could create additional bureaucracy for companies. This is because the EU is already working on another product-labelling framework that will address emissions from steel and other materials.

Instead of the label, the EU plans to encourage demand for low-carbon steel through separate sustainability rules. The draft indicates that the bloc may introduce measures under a broader law on sustainability standards for products. However, the proposal does not specify when this new regulation might be published.

The Industrial Accelerator Act itself has already faced several delays, and the draft could still change before the final version is released. A spokesperson for the European Commission declined to comment on the latest draft.

Despite removing the emissions label, the proposal still includes measures aimed at boosting green steel demand within Europe. One key requirement states that when public money is used to purchase technologies or materials, a minimum share must be manufactured locally.

In addition, the draft requires that at least 25% of steel used in EU public procurement projects must qualify as low-carbon steel. Policymakers hope this rule will help create a reliable market for cleaner steel production.

Industry players, however, say the removal of the EU steel emissions label could slow progress.

Spanish low-carbon steel producer Hydnum Steel said a classification system is urgently needed to guide investment and help create early markets for greener materials.

“Without this classification, the impact of measures designed to create lead markets will be delayed, failing to direct vital investment toward European producers at this critical juncture,” the company said in a statement.

The European steel industry has echoed similar concerns. The industry association Eurofer warned that delaying the label could create uncertainty for investors who are already navigating a challenging transition.

“Postponing the decision risks pushing crucial investment choices further down the road,” a spokesperson said.

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Across Europe, several green steel projects have already faced delays or financial pressure. The technology required to produce low-carbon steel remains relatively new and requires significant investment, making long-term policy clarity critical for companies planning large industrial projects.

For now, the future of the EU steel emissions label remains uncertain as policymakers continue shaping the final version of the Industrial Accelerator Act.

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Source: Reuters