According to steel maker ThyssenKrupp, steel production outside Europe is not being impacted by costs for CO2 certificates leading to a divergence in competitive conditions. As a consequence, the industry could abandon Europe as a production location.
“As a consequence of a costly EU solution for emissions trading, we expect investments in steel production to be stopped, jeopardizing our integrated iron and steel making site in Duisburg with more than 10,000 jobs.”
Another consequence to consider is the current tight condition for global steel supply due to increasing consumption from developing countries. Standards at overseas production facilities are significantly lower than those applied by European producers, ThyssenKrupp said. The collapse of European steel industry will only expand production from unregulated countries, which will exacerbate the increase in global carbon emissions.