Major European producers, including Salzgitter AG and SSAB AB, are lobbying policymakers to resist weakening the bloc's emissions trading system. These companies argue that any dilution of carbon pricing would erode the investment certainty required for massive decarbonization projects. They fear a watered-down market would penalize early movers and stall the industry's transition to clean energy.

Industry leaders, including Outokumpu Oyj and Saarstahl AG, contend that high electricity costs and global overcapacity pose greater threats than carbon prices. The group wants the European Commission to maintain a 4.4% annual emission reduction rate through 2035. This stability is essential for companies planning long-term capital expenditures to replace traditional blast furnaces.

As the EU prepares its reform review on July 15, the industry is also demanding a robust Carbon Border Adjustment Mechanism. This levy aims to protect local manufacturers from foreign competitors operating under looser environmental regulations. The steelmakers insist that revenues from carbon markets must be reinvested directly into industrial decarbonization efforts to ensure long-term competitiveness.