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, 05 June 2025 – The high level of uncertainty and major disruptions caused by the new U.S. tariffs have dealt a severe blow to recovery expectations in the steel market for 2025. Against the backdrop of broader economic resilience driven by services, industry remains weak, weighing on steel demand and consumption. Recovery is not expected before 2026, and only if positive developments emerge in the global geoeconomic outlook. According to EUROFER’s latest Economic and Steel Market Outlook, the recession in apparent steel consumption will continue in 2025 (-0.9%) for the fourth consecutive year (-1.1% in 2024), contrary to earlier forecasts of growth (+2.2%). A similar trend is expected for steel-using sectors, with another recession in 2025 (-0.5%, after -3.7% in 2024) instead of a projected recovery (+1.6%). Steel imports remained at historically high levels (27%) throughout 2024.
Second quarter 2025 report. Data up to, and including, fourth quarter 2024
Brussels, 4 June 2025 – With U.S. blanket tariffs now raised to 50%, the only way to avoid the further erosion of the European steel market and another blow to European steelmakers is the swift implementation of the “highly effective trade measure” promised by the European Commission in its Steel and Metals Action Plan. A negotiated solution between the EU and the U.S. is also vital to preserve EU steel exports to the U.S., warns the European Steel Association.