Posted on 23 Oct 2026
European steelmakers have welcomed the compromise reached in the European Parliament on CO₂ emission standards for passenger cars and vans. The agreement provides a dedicated incentive for carmakers to use low-carbon steel produced in the EU. This was stated in a press release by the European Steel Association (EUROFER).
EUROFER believes that such a measure will create the necessary market for low-carbon steel and at the same time help the automotive sector reduce production-related emissions.
The compromise, agreed by the three largest political groups in the European Parliament, sets a target of reducing vehicle carbon emissions by 87.5% by 2035 (compared to 2021 levels). At the same time, eligible low-carbon steel produced in Europe can be counted as an additional contribution (up to 7.5%) towards meeting these requirements.
The association recalled that European steelmakers are making large-scale investments in decarbonization. More than 60 major projects aimed at producing low-carbon steel are already planned or under way across Europe. In total, by 2030 they could provide more than 20 million tonnes of additional production capacity of such steel products for the automotive industry – enough to supply all cars registered in the EU each year.
“European steel producers are investing in low-carbon production, but what is the point of upgrading plants if there is no market for the steel they produce? This ‘steel quota’ will turn demand from European carmakers into investment, production and quality jobs in Europe. Low-carbon steel made in the EU should be used in cars made in the bloc,” noted Axel Eggert, Director General of EUROFER.
The association stressed that the quota should remain dedicated to green steel and not be expanded to include other low-carbon materials. The latter can be supported by separate incentives.
EUROFER also welcomed the inclusion of a “Made in EU” requirement, which ensures that only low-carbon steel melted and poured in the EU qualifies.
The vote on this proposal in the European Parliament is scheduled for later this year, ahead of negotiations with the European Commission and the EU Council. The industry association calls for the dedicated low-carbon steel quota and the strict “Made in EU” requirement to be retained in the final agreement.
As a reminder, the European automotive sector is concerned about the expansion of the scope of CBAM. Industry associations note that this could lead to higher costs and administrative burden.
Source:GMK Center
