What threatens the metallurgy of the European Union

It would seem that steel production is still an important element of the European Union's economy. Metallurgy ranks first among the protected industries. From what? Unfortunately, it must be admitted that the EU attacks the industry much better than it defends it.

The European Union creates conditions under which metallurgical companies stop making investments. The new CO2 trading program, ETS, will increase the cost of steel production and may lead to the closure of some rolled steel mills.

The European Union has been protecting the freedom of trade and business for many years. However, in the case of industries, it looks like EU rules are pushing for travel to other regions of the world. And now there is an additional burden in the form of changes in the ETS emissions trading system, the highest effect of which will be an increase in the operating costs of the metallurgy.

The European Union does not hide that the only purpose of these changes is to increase the price of emission rights, which should cost 30 euros. Admittedly, energy-intensive industries that threaten so-called carbon leakage are expected to move these industries out of the European Union to countries that do not have such strict climate policies, where all emission rights can be obtained free of charge. According to the calculations of the steel industry, free opportunities will begin to be absent as early as 2024, and about 40 percent of the permits will need to be purchased in 2030.