The need for a full value chain approach
Thursday 5 March: Orgalim Director General Ulrich Adam spoke on a panel debate covering circularity and decarbonisation in the steel sector, alongside representatives from across the steel value chain including associations Eurofer and Eurometal, industry standards body Low Emission Steel Standard (LESS) and Damen Shipyards Group and material handling company Jungheinrich AG.
The event "In the Loop with Cattwyk: Circularity in the Steel sector” looked at how Europe can advance its climate objectives while preserving industrial competitiveness.
While there was broad agreement that increasing circularity and reducing emissions in the steel sector are essential, the discussion underlined that the current policy framework risks creating structural imbalances across the value chain. On behalf of Europe's technology industries, Orgalim stressed the importance of a holistic approach.
We need a full value chain approach that ensures the competitiveness of the exports market.
Several participants also pointed to the growing disconnect between upstream regulation and downstream impacts. While steel producers face increasing regulatory and cost pressures, downstream users (including many SMEs) are directly exposed to higher material costs, regulatory uncertainty and global competition, yet remain insufficiently considered in policy design.
A recurring issue was the absence of a clear European definition of green steel. Without common criteria distinguishing low‑emission steel, recycled content or other decarbonisation pathways, demand remains fragmented and markets struggle to develop. Participants also emphasised that circularity cannot be achieved without affordable and reliable energy, which remains a critical concern for European industry.
Finally, the discussion also addressed the implications of CBAM. While its good intentions and the overall aim and objectives are understood, panellists underlined that, in its current design, CBAM does not reduce emissions at source and risks shifting carbon‑leakage risks further down the value chain. Indeed, by increasing the cost of key inputs such as steel without addressing finished and semi‑finished imports, CBAM places Europe’s technology industries at a competitive disadvantage on both EU and global markets. This is particularly true given that customers typically base their purchasing decisions on the price of the final product, not on the carbon footprint of intermediate inputs. In globally competitive markets, additional costs linked to steel decarbonisation cannot simply be passed on.
For Orgalim, the discussion confirmed a core message already set out in our paper from September 2025, when we covered how climate ambition will fail if it undermines Europe’s industrial base. Circularity and decarbonisation policies must reflect global market realities, involve the entire value chain and avoid shifting carbon leakage risks downstream. Rather than being an obstacle to climate action, competitiveness is in fact a precondition for delivering it.