When is an EU 'dialogue' actually a monologue?

From railway lines to wind turbines, steel has not only forged the foundations of the European Union but remains a critical building block for its future.

The industry underpins more than two million jobs and remains crucial for the EU’s economic and geopolitical strength. But it’s also one of the dirtiest sectors: still largely coal-powered, steelmaking is responsible for five percent of the EU’s greenhouse gas emissions and costs taxpayers €7bn a year in public health damage. 

Despite its central role in modern societies, and its enormous climate, social and environmental impact, the sector’s decarbonisation is stalling.

Free emissions allowances under the EU carbon market have shielded steelmakers from real climate costs, failing to incentivise cleaner production. Meanwhile, dozens of green steel projects remain stuck in the pipeline, while steelmakers call on the EU for short-term relief on energy prices and more assertive trade defence measures.

No surprise, then, that steel has become a top priority for EU policymakers. The sector was granted “strategic” status under the European Commission’s Clean Industrial Deal, a package designed to boost competitiveness and accelerate the green transition. Now, it awaits a tailor-made action plan, set to be unveiled next Wednesday (19 March).

Steel is certainly approaching its make-or-break policy moment.

One key voice was missing

As a sign of steel’s growing momentum, the European Commission this month launched a Strategic Dialogue on the Future of Steel —a high-level roundtable with industry executives and policymakers.

Yet one key voice was missing: civil society. Of the 21 participants, only two were non-industry representatives: a trade union and a think tank. No civic organisations were invited.

Some may argue that industrial transformation is too technical for NGOs. But this is absurd. Networks like the European Environmental Bureau and Climate Action Network Europe have contributed technical expertise and science-based solutions to EU industrial fora for decades.

We have seen policymaking hijacked by vested interests when polluters dominate the negotiating table — as seen recently with the chemical industry and the 'forever chemicals' scandal

The reality is that civil society is being shut out, and this is part of a broader and troubling trend: an industry-led agenda that sidelines environmental and social concerns.

Industrial policy is public policy: it demands democratic engagement. NGO participation in these roundtables is essential to ensure that the public interest comes first; especially as the commission opens the floodgates of subsidies for big corporations with weak conditions attached.

There are good reasons to be wary of an industrial agenda shaped by some of Europe's biggest polluters. We have seen policymaking hijacked by vested interests when polluters dominate the negotiating table — as seen recently with the chemical industry and the ‘forever chemicals’ scandal, or when negotiating emissions standards for industrial facilities.

There are areas of agreement between NGOs and the steel industry — such as closing loopholes in the Carbon Border Adjustment Mechanism (CBAM) and strengthening green public procurement to support EU-made green steel.

But the industry’s delaying tactics are holding back the very transformation it claims to support.

Europe’s steel plants are aging, and decisions on their future must be made now. While 33 green steel projects have been announced, most are stuck in limbo, with no final investment decisions made. Take Europe’s largest steelmaker, ArcelorMittal, which has decided to indefinitely delay its planned green hydrogen investments despite securing billions in public aid, leaving thousands of jobs hanging in the balance.

Last chance for 'green steel'

And all of this is happening at a time when global trade frictions are rife. Coal-based steelmaking is not just an environmental liability; it is an economic one. Electrifying industry facilities with renewables and improving material circularity are essential for resilience in an increasingly volatile and competitive world.

The cost of inaction on climate could be catastrophic. Just last month, Germany’s federal intelligence service warned that climate change threatens the very survival of the European Union, exacerbating conflicts and disasters in the next 15 years.

Quite simply, this is the EU’s last shot to get the shift to green steel right. That means putting public interest ahead of corporate interests, tightening conditions on public funding, and ensuring robust transformation plans.

But can we trust the industrial strategy to deliver these outcomes if it is shaped solely by corporate, profit-driven analyses?

Just because it has ‘industry’ in its name doesn’t mean the new EU policy agenda should be dictated by industry executives. For European industry to maintain its competitive edge, it needs fair and ambitious transition — one built on scientific evidence and inclusive governance.