ArcelorMittal’s decision to delay hydrogen-based green steel projects across Europe has intensified calls for stronger EU policies to support industrial decarbonization. The steel giant cited unfavorable market conditions and gaps in policy frameworks, despite securing billions in state aid for its initiatives.
Funding Secured, but Uncertainty Remains
ArcelorMittal recently received significant financial backing, including €1.3 billion in Germany, €850 million in France, €460 million in Spain, and €280 million in Belgium, for transitioning to hydrogen-based steelmaking. However, the company stated it could not commit to final investments without clearer visibility on energy costs, carbon pricing mechanisms, and demand for green steel.
Critics warn that this pause jeopardizes Europe’s leadership in green industrial transformation. “Delaying these projects puts the EU’s competitiveness and decarbonization targets at risk,” said Boris Jankowiak from Climate Action Network Europe. The delay has also left workers and communities in limbo, sparking concerns over potential job losses.
EU Faces Mounting Pressure to Act
The timing of ArcelorMittal’s announcement coincides with the European Commission’s preparations to launch its Clean Industrial Deal. Executive Vice-President for the Green Transition Teresa Ribera will visit ArcelorMittal’s Ghent facility this week to discuss the challenges.
RenewableH2, a trade association, emphasized that policy gaps must be addressed urgently. “Renewable hydrogen and electricity are the backbone of green steel production,” the group said, urging policymakers to close the cost gap and boost demand for sustainable alternatives.
Swedish steelmaker SSAB echoed these sentiments, calling for robust carbon pricing mechanisms and standardized near-zero emissions regulations to ensure long-term stability for investments.
ArcelorMittal’s move has reignited debate over Europe’s ability to balance industrial transformation with economic competitiveness. The new European Commission’s forthcoming policies will likely determine whether green steel production can scale up or if Europe risks losing its decarbonization edge.
