Italy’s steel producers association Federacciai has criticized the Industrial Accelerator Act (IAA) proposed by the European Commission, arguing that the initiative does not adequately support the European steel sector.
According to Federacciai president Antonio Gozzi, the legislation represents “another missed opportunity to strengthen the competitiveness of the European steel industry.”
Absence of “Made in Europe” criteria for steel
One of the main concerns raised by the association is the lack of “Made in Europe” procurement criteria for steel, which are included in the proposal for other materials such as aluminum and cement.
Gozzi stated that the Commission appears to assume the steel sector will benefit from new trade defense measures following the expiration of current EU steel safeguards. However, he argued that such mechanisms are designed to address global overcapacity and cannot replace targeted support for strategic European steel production, particularly projects focused on industrial decarbonization.
Concerns over scrap policy and low-carbon steel definitions
Federacciai also expressed concern regarding ferrous scrap, which it considers a strategic raw material for circular economy processes and low-emission steelmaking.
According to Gozzi, earlier drafts of the legislation included measures to encourage the use of secondary raw materials within Europe and strengthen monitoring of scrap exports, but these provisions were removed from the final proposal.
The association also highlighted uncertainty around the definition of “low-carbon steel.” While the European Commission decided not to regulate a voluntary green steel label, Federacciai believes the legislation fails to clearly define the methodology for measuring carbon emissions.
Gozzi emphasized that any classification system should be based solely on the actual carbon footprint of the final steel product, warning that mechanisms such as a “scrap sliding scale” could unfairly penalize electric arc furnace (EAF) production, which is widely regarded as one of the most environmentally advanced steelmaking technologies.
Debate continues within the EU
The association called on the European Parliament and the Council of the EU to strengthen the proposal during the legislative process.
Debate around the Industrial Accelerator Act has largely focused on the introduction of “Made in Europe” rules for materials used in publicly funded energy transition projects.
However, EU member states remain divided. Some support stronger local-content requirements to protect European industry, while others warn that stricter rules could increase procurement costs and reduce investment competitiveness.
European steelmakers have also cautioned that without clear origin requirements, funds intended to support decarbonization efforts could end up benefiting low-emission steel production outside the EU rather than strengthening the bloc’s domestic industrial base.
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