European Commission: Action Plan to boost steel and metals industry

The European Commission has unveiled a comprehensive Action Plan on Steel and Metals, aiming to safeguard the EU’s industrial competitiveness while accelerating the green transition of the steel and metals sector. The plan introduces a series of short- to medium-term measures focused on energy affordability, trade protection, and decarbonisation, in response to increasing global competition and internal market pressures.

According to the official communication released by the Commission, the plan is designed to “maintain and expand European industrial capacities in the steel and metals sectors,” which are seen as critical to the EU economy and strategic autonomy. The action plan complements broader initiatives such as the Clean Industrial Deal and the newly presented ReArm Europe Plan / Readiness 2030.

Commission President Ursula von der Leyen emphasized the sector’s significance, stating: “The steel industry has always been a core engine for European prosperity. Next-generation, clean steel should therefore continue to be manufactured in Europe. That means we have to help our steelmakers who are facing strong headwinds on the global market.”

Key Measures in the Action Plan

Energy Affordability and Supply Security
High energy costs remain a central challenge for metals producers. The Commission proposes wider use of Power Purchase Agreements (PPAs) and urges Member States to consider reduced electricity taxes and network tariffs. The plan also supports faster grid access and promotes the use of renewable and low-carbon hydrogen within the sector.

Strengthening Trade Defences
To address ongoing concerns about unfair global competition, the Commission intends to tighten existing trade defence mechanisms. A new safeguard measure for steel imports will be proposed before the end of 2025, replacing the current system due to expire in mid-2026. The plan also notes the Commission will assess the introduction of a “melted and poured” origin rule to prevent circumvention of anti-dumping duties.

Carbon Border Adjustment Mechanism (CBAM) Enhancements
The Commission will issue a communication in the second quarter of 2025 addressing carbon leakage risks for EU exports subject to CBAM. A legislative proposal is expected by the end of the year to extend CBAM coverage to additional steel and aluminium-based downstream products and implement stricter anti-circumvention provisions.

Promoting Circularity and Scrap Availability
Recognizing the importance of recycled materials for decarbonisation, the Commission plans to establish targets for recycled steel and aluminium content in sectors such as construction and electronics. Trade measures may be introduced to secure sufficient availability of metal scrap within the EU.

Accelerating Industrial Decarbonisation
The plan outlines financial support mechanisms to scale low-carbon production technologies. This includes a €150 million allocation from the Research Fund for Coal and Steel (2026–2027), €600 million from Horizon Europe, and up to €100 billion via the proposed Industrial Decarbonisation Bank. A €1 billion pilot auction focused on clean industrial processes is scheduled for 2025.

Protecting Jobs and Skills
With approximately 2.6 million jobs directly and indirectly supported by the steel and metals sector, the plan stresses the importance of a fair transition for workers. Initiatives such as the European Fair Transition Observatory and Quality Jobs Roadmap will monitor labour impacts and support upskilling and reskilling efforts.

Strategic Context

The Action Plan builds on inputs from the Strategic Dialogue on Steel and Metals, including the Steel Dialogue held on March 4, 2025. It is the second sector-specific strategy of the current Commission, following the Automotive Industry Action Plan presented earlier this month. It also incorporates findings from the Transition Pathway for the Metals Sector, published alongside the action plan, which reflects extensive stakeholder input and industry analysis.

The European steel industry operates around 500 production sites across 22 Member States and contributes roughly €80 billion annually to EU GDP. The Commission considers the sector vital for key value chains including automotive, clean technologies, and defence.

Source: EU Commission, Photo: Fotolia