Czech Business Today
EU Steel and Metals Action Plan: What It Means for Czech Industry
The European Commission’s new Steel and Metals Action Plan brings long-awaited support for Europe’s energy-intensive sectors. For Czech steel and metal producers, it addresses concerns of high energy prices, global competition, stricter decarbonization demands, and shrinking production capacities.
The plan introduces a set of measures, including adjustments to trade tools like the Carbon Border Adjustment Mechanism (CBAM), funding for green technologies, and simplified permitting processes. The Czech Confederation of Industry welcomes the plan’s recognition of geopolitical risks and unfair trading practices, especially from countries with state-subsidized overcapacity.
However, energy—arguably the most pressing issue—is not sufficiently tackled. Many proposals, such as support for renewables and indirect cost compensation, are recycled from previous Commission initiatives. The Confederation calls for an EU-wide obligation to provide compensation for indirect costs, as current voluntary schemes create disparities—countries like Germany can offer far more support than the Czech Republic.
The plan also fails to address the volatility of the EU Emissions Trading System (ETS), which undermines investment planning. The Confederation argues for a price corridor and improved predictability in carbon pricing. It also criticizes the suggestion of curbing production during energy spikes, stating this is not suitable for continuous production processes.
Speeding up permitting is a positive step, but without binding rules, Member States may stall implementation. Streamlined spatial planning and simplified documentation are key to unlocking industrial investment.
On decarbonization, the Commission places hope in hydrogen-based steelmaking, but industrial-scale use remains years away. Rather than setting premature targets, the Confederation urges the removal of barriers such as restrictive delegated acts.
CBAM reforms are one of the most promising aspects. The current system fails to prevent carbon leakage through processed goods and allows for “resource shuffling.” Until these flaws are fixed, the Confederation opposes the removal of free emission allowances. CBAM also does not protect EU producers in third-country markets, a gap the Commission promises to address.
Plans to classify scrap metal as a strategic raw material are welcomed, as steel scrap is vital steel industry decarbonization. However, mandatory recycled content quotas raise concerns over product quality and cost. In short, while the Action Plan is a step in the right direction, its success depends on swift, concrete implementation. For Czech industry, it’s an opportunity—if backed by fair rules, proper funding, and real reforms across the EU.
