Richard Parks ArcelorMittal’s decision to postpone its hydrogen-based green steel projects across Europe has raised questions about the future of the continent’s industrial transition. The steel giant blamed unfavorable policy, energy costs, and market conditions, pointing specifically to weaknesses in the EU’s carbon border adjustment mechanism (CBAM), which aims to protect domestic industries from less-regulated foreign competitors.
Green Steel Plans on Hold
The pause in ArcelorMittal’s decarbonization efforts comes despite EU approvals for billions in state aid to support green steel production. Subsidies include €1.3 billion in Germany, €850 million in France, €460 million in Spain, and €280 million in Belgium. However, the company announced last week that it could not commit to final investment decisions without greater policy clarity and support.
Renewable energy advocates, including the trade group RenewableH2, criticized the delay, calling it a setback for industrial decarbonization. “Renewable hydrogen and electricity are key to deeply reducing emissions in steel production,” the group stated, urging the EU to prioritize support for green technologies and market incentives.
EU Faces Pressure to Act
The announcement comes as the European Commission gears up to unveil its Clean Industrial Deal. Executive Vice-President Teresa Ribera and other senior EU officials will visit ArcelorMittal’s Ghent facility this week to discuss challenges in green industrial transformation.
Some in the industry downplayed the delay, with Hydrogen Europe noting that project hold-ups are common in new industries and highlighting the need for regulatory simplification. Meanwhile, Swedish steelmaker SSAB stressed the importance of stable carbon pricing and emissions standards to create a competitive environment for green investments.
With the EU’s Clean Industrial Deal expected in the coming months, stakeholders are watching closely to see if the Commission can bridge the cost gap for green technologies and push Europe toward its decarbonization goals. ArcelorMittal’s pause underscores the urgency of strong, supportive policies to secure the future of sustainable heavy industry.