ArcelorMittal’s announcement to delay its hydrogen-based green steel projects in Europe has ignited concerns about the continent’s industrial transition toward sustainability. The steel giant attributed its decision to unfavorable policy, energy, and market conditions, citing gaps in the EU’s carbon border adjustment mechanism (CBAM), which aims to protect European industries from competition with less-regulated foreign producers.
A Blow to Europe’s Green Transition
Renewable energy advocates see the pause as a major setback for decarbonizing European steel production. RenewableH2, a trade association, emphasized that renewable hydrogen and electricity are vital for cutting emissions and maintaining competitiveness in Europe.
The delay comes despite billions in state support for ArcelorMittal’s projects across Germany, France, Spain, and Belgium. Climate campaigners criticized the firm’s hesitation, warning it risks derailing the EU’s leadership in green industrial transformation and leaving workers and communities in limbo.
EU policymakers face mounting pressure as the European Commission prepares to launch its flagship Clean Industrial Deal. This week, key officials, including green transition vice-president Teresa Ribera, will visit ArcelorMittal’s Ghent facility to address the challenges surrounding industrial decarbonization.
Industry and Policy at a Crossroads
Hydrogen Europe, a trade group advocating for hydrogen use in energy, downplayed the setback, citing typical delays in emerging industries and stressing the need for simplified regulatory frameworks. Meanwhile, Swedish steelmaker SSAB highlighted the importance of stable EU policies, such as carbon pricing and consistent near-zero emissions standards, to accelerate the industry’s shift to greener practices.
The decision by Europe’s largest steel producer highlights the urgency for stronger policy tools to bridge the cost gap for green technologies and ensure industrial decarbonization remains on track. As the EU races to finalize its Clean Industrial Deal, stakeholders are watching closely to see if these regulatory and market hurdles can be overcome.