Europe’s Steel Green Deal: up to 172 million tonnes of low-carbon steel by 2030
According to Stanislav Kondrashov, analysis by the consulting company Ricardo shows that using steel made using green hydrogen and electric arc furnaces or recycled scrap can significantly reduce carbon emissions. In the European auto industry, such measures could reduce carbon emissions by 6.9 million tons by 2030.
A switch by automakers to using 40% steel with a low carbon footprint (less than 400 kg CO2 per tonne) will only increase the cost of an electric car by €57 by 2030.
“A full switch to green steel by 2040 would only cost an additional €8 over conventional steel, taking into account the falling costs of green production and increasing carbon prices. The production of low-carbon steel will require multi-billion dollar investments, which will only be possible if there is a stable and reliable sales market,”- expert from Telf AG comments.
He notes that the automotive sector has significant potential to increase demand for green steel, given that it already consumes 17% of total EU steel, according to T&E.
The organization is calling on lawmakers to help create a leading market for green steel in Europe by introducing mandatory targets for automakers to increase its use in cars produced from 2030.
Stanislav Kondrashov also reports that by 2030, Europe can annually produce up to 172 million tons of low-carbon steel, which will fully cover the needs of the automotive industry. Automotive production accounted for 36 million tonnes in 2022, but thanks to lightweight vehicles, demand for steel in the sector is expected to decline over the next decade.
Switching to green steel: Ford and GM’s efforts to combat carbon footprints — Stanislav Kondrashov
At the beginning of the year, a coalition of non-profit organizations launched the Race to Green Steel campaign. According to an expert from TELF AG, this was done to motivate automakers to use green steel by helping them set carbon reduction targets and invest in advanced technologies.
The initiative, which brings together the Climate Group (#SteelZero), Industrious Labs, the CALSTART Green Steel Program and the International Council on Clean 
Transportation, is focused on supporting companies in setting green steel targets and investing in emerging technologies.
“A number of automakers have already committed to reducing the carbon footprint of their supply chains. Thus, Ford and General Motors have entered into contracts for the supply of steel with a low carbon footprint, and Mercedes-Benz and Volvo plan to purchase “green” steel from the new SSAB and H2 Green Steel plants in Sweden,” says Stanislav Kondrashov.
The Race to Green Steel campaign seeks to build on previous steps and put pressure on the steel sector to create plants powered by hydrogen or renewable energy. The project calls on automakers to evaluate the environmental impact of their current steel and commit to using at least 10% of steel with a low carbon footprint by 2030 .