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New Label Based on ETS and CBAM to Promote Low-Carbon Steel; Public Input Open Until Late July
The European Commission has launched a 12-week public consultation beginning May 2 to assess options for a voluntary carbon intensity label for steel products, as part of its broader Clean Industrial Deal aimed at decarbonising energy-intensive industries (EIIs).
This initiative, tied to the Industrial Decarbonisation Accelerator Act, seeks to fast-track permitting, promote key decarbonisation projects, and foster demand for low-carbon European industrial goods.
Voluntary Steel Label to Build on ETS and CBAM Data
Among the policy tools under consideration is a steel carbon label based on EU Emissions Trading System (ETS) data and methodologies aligned with the Carbon Border Adjustment Mechanism (CBAM). The goal is to help create lead markets for low-carbon products and provide transparent sustainability metrics to buyers.
The Commission’s impact assessment also includes incentives for adopting clean carbon feedstocks, such as:
- Carbon capture and utilisation (CCU)
- Sustainable biomass
- Recycled waste-based feedstocks
Strategic Push to Strengthen EU Industrial Resilience
The European Commission emphasized the strategic importance of EIIs, noting they are essential to sectors such as defence, digital tech, and economic infrastructure.
“Without further EU action, we risk losing strategic industries and becoming overly dependent on imports,” the Commission stated.
The document stresses that only EU-wide measures can properly address the structural challenges facing EIIs, including:
- High energy costs
- Unfair global competition
- Complex regulatory burdens
The new proposals aim to protect and strengthen domestic production, particularly in the face of global decarbonisation efforts and evolving trade frameworks.
Public Feedback Open Until July
All stakeholders, including companies, governments, NGOs, and private citizens, are invited to submit input on the proposed policy directions via the Commission’s consultation portal by late July.
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