Publications » Position papers » Revision of the Climate, Energy and Environmental Aid Guidelines (CEEAG)
Revision of the Climate, Energy and Environmental Aid Guidelines (CEEAG)
Downloads and links
Recent updates
The Commission’s public consultation on the revised Climate, Energy and Environmental Aid Guidelines (CEEAG) offers s the basis for a thorough debate around the legislative framework that is necessary for a successful transformation of the EU economy towards climate neutrality.
European steel companies are already developing major emission reduction technologies and are willing to continue to accelerate this work in order to fulfil this objective. Such a major transformation of the sector will require significant investment in the new technologies while the sector needs to remain competitive throughout the entire transition and beyond. Furthermore, external factors not directly controlled by the sector (most importantly, access to competitive low carbon energy/electricity and feedstock) will play a crucial role.
The current Commission’s draft proposal on the CEEAG contains elements that may hinder the steel sector’s competitiveness by unduly increasing energy costs, as well as its transition towards electricity-based technologies. In particular, EUROFER underlines the need for revised state aid rules covering the full abatement costs of the new low-carbon processes for those sectors including steel that are the most exposed to international competition. Carbon pricing policies alone such as ETS don’t offer enough protection for counterbalancing carbon leakage-related problems.
Therefore, we need – as soon as possible – a comprehensive policy framework that preserves the competitiveness of the sector and creates the conditions for fostering the necessary investment.
Download this publication or visit associated links
Brussels, 11 September 2025 – The lack of a solution for steel in the EU-U.S. trade negotiations, the ongoing unpredictability of the global geoeconomic situation, and persistently weak demand against an ever-growing global steel overcapacity are squeezing the European steel market. In 2025, the outlook points to stagnation, with potential recovery only in 2026 — conditional on improvements in the global economy and an easing of trade tensions. According to EUROFER’s latest Economic and Steel Market Outlook, another recession both in apparent steel consumption (-0.2%, revised upwards from -0.9%) and in steel-using sectors (-0.7%, revised downwards from -0.5%) is confirmed for 2025. Growth prospects are now delayed at least to 2026, with projections of a rebound for both apparent steel consumption (+3.1%) and steel-using sectors (+1.8%). However, steel imports continue to hold historically high market shares (25%) in 2025.
Third quarter 2025 report. Data up to, and including, first quarter 2025
Brussels, 10 September 2025 – Reacting to today’s State of the Union Address delivered by Commission President Ursula von der Leyen, Axel Eggert, Director General of the European Steel Association (EUROFER) said: