17.09.25
This paper provides a detailed assessment of the European Commission’s Steel and Metals Action Plan and the Transition Pathway for the European metals sectors, through the lens of institutional investors committed to net zero.
Steel accounts for around 5% of EU CO2 emissions and is a critical input for key industries including construction, energy, and transport. As such, the decarbonisation of steel is essential for Europe’s climate goals and economy-wide net zero transition.
Building on IIGCC’s prior work - including investor priorities for steel sector transition and principles for sector decarbonisation roadmaps - this report evaluates where recent EU initiatives align with investor expectations, and where gaps remain. Key areas discussed include policy clarity, financial mechanisms to support investment, and the establishment of credible sector roadmaps to enable effective decision-making by investors.
This paper aims to support investors in engaging with policymakers and steel companies, helping to accelerate Europe’s transition to a low-carbon steel sector while managing climate-related financial risks.