ArcelorMittal, thyssenkrupp Steel and voestalpine call for pragmatic ETS reform, to secure the competitiveness of European steelmaking and help to accelerate decarbonisation

Rhea-AI Summary

ArcelorMittal Europe, thyssenkrupp Steel and voestalpine, representing about 60% of Europe’s integrated steel production, jointly call for urgent, pragmatic reform of the EU Emissions Trading System (ETS). They argue rising ETS costs, without key decarbonisation enablers in place, threaten Europe’s industrial base and steel competitiveness.

The companies estimate current rules could lift EU steel production costs by around 50% by the early 2030s and risk a 30–40% decline in steel‑intensive manufacturing, putting up to 5 million jobs at risk. They propose a temporary pause in ETS cost escalation, targeted support for first‑mover decarbonisation projects, directing ETS revenues to industrial decarbonisation, and a balanced approach to import and export competitiveness alongside CBAM and Tariff Rate Quotas.

News Market Reaction – MT

-4.90%

-4.90% Session close to close

In the Jun 17 session, MT declined 4.90%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights structural policy risk for EU steel, with ETS-driven costs for EU steel...

Analysis

This announcement highlights structural policy risk for EU steel, with ETS-driven costs for EU steelmaking expected to rise by about 50% and potential impacts on up to 5 million jobs without reform. It also sits against ArcelorMittal’s decarbonisation progress, including a 47.7% reduction in Scope 1 and 2 emissions and a €1.3 billion Dunkirk project. Investors should monitor EU ETS reforms, CBAM implementation, and how these shape project economics and competitiveness.

Key Figures

Power emissions reduction: 49% EU steel cost increase: 50% Manufacturing decline risk: 30–40% +5 more

8 metrics

Power emissions reduction 49% Reduction in power sector emissions under ETS between 2005 and 2023

EU steel cost increase 50% Expected increase in EU steel production costs by early 2030s under current ETS

Manufacturing decline risk 30–40% Estimated potential decline in steel-intensive manufacturing activity without ETS reform

Jobs at risk 5 million Estimated jobs at risk across the value chain if ETS is not reformed

Manufacturing GDP target 20% EU goal for manufacturing share of GDP in Industrial Accelerator Act

Scope 1+2 emissions cut 47.7% Reduction in ArcelorMittal’s absolute Scope 1 and 2 emissions since 2018

Carbon intensity 1.79 tCO₂e per tonne ArcelorMittal 2025 group carbon intensity per tonne of steel

Dunkirk project size €1.3 billion Transformation project at Dunkirk to install a 2-million-tonne electric arc furnace

Historical Context

5 past events · Latest: Jun 03 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 03	Insider transaction filing	Neutral	-0.3%	Disclosure of a designated person share transaction under EU rules.
May 27	Insider transaction filing	Neutral	+0.0%	Notification of a designated person share transaction filed under MAR Article 19(3).
May 19	Asset sale & buyback	Positive	-3.9%	Partial sell-down of Vallourec stake to raise about US$667M for share buybacks.
May 13	Insider transaction filing	Neutral	+4.0%	Online disclosure of director/executive share transaction information.
May 13	Debt offering	Neutral	+4.0%	Pricing of US$1.0B 5.375% notes due May 2036 for general corporate purposes.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news has mostly been routine disclosures, with a notable divergence where a buyback-funded asset sale saw a negative next-day reaction.

Recent Company History

Over the last few months, ArcelorMittal’s news flow has featured several designated person notifications (insider transaction disclosures) and two capital allocation moves. On 19 May 2026, the company sold about 10% of Vallourec to fund share buybacks, with the stock down 3.9% the next day. Also on 13 May 2026, ArcelorMittal priced a US$1.0 billion bond issue, with shares up 3.98%. Today’s ETS-focused policy statement fits into a broader decarbonisation and portfolio-transition narrative highlighted in recent 6-K filings.

Key Terms

eu emissions trading system (ets), carbon contracts for difference, carbon capture and storage, carbon border adjustment mechanism (cbam), +1 more

5 terms

eu emissions trading system (ets) regulatory

"urgent, pragmatic reform of the EU Emissions Trading System (ETS), warning that..."

A European Union program that sets a firm limit on total greenhouse gas emissions and issues tradable permits that companies must hold for each ton of CO2 they release. Companies can buy, sell or save unused permits, creating a market price for pollution; this affects operating costs, profit margins and investment choices for energy-intensive firms and can boost demand for cleaner technologies or carbon-related financial products.

carbon contracts for difference financial

"including competitive electricity prices, affordable green hydrogen, Carbon Contracts for Difference..."

Carbon contracts for difference are government-backed agreements that guarantee a fixed price for avoided greenhouse gas emissions, paying the difference if market carbon prices are lower than the agreed strike price or reclaiming funds if they are higher. For investors, they reduce the revenue uncertainty of projects that cut or capture emissions—like a safety net that makes long-term low-carbon investments easier to value and finance, similar to locking in a minimum price for a product.

carbon capture and storage technical

"affordable green hydrogen, Carbon Contracts for Difference, carbon capture and storage..."

Carbon capture and storage is a set of technologies that remove carbon dioxide from industrial emissions or the air and keep it isolated, usually by compressing it and injecting it deep underground for long-term storage. For investors, it matters because it can lower a company's regulatory and climate risk, create new revenue or cost opportunities, and influence future demand for energy, materials, and services—think of it as a vacuum and lockbox that helps firms meet emissions limits and avoid penalties or lost market share.

carbon border adjustment mechanism (cbam) regulatory

"The recent introduction of the Carbon Border Adjustment Mechanism (CBAM) and the upcoming..."

A carbon border adjustment mechanism (CBAM) is a policy that charges imports a fee based on the greenhouse gas emissions produced to make them, similar to adding a price at the border so foreign goods face the same pollution cost as local products. Investors care because it can raise costs for carbon‑intensive producers, shift supply chains, change competitiveness across industries, and create regulatory risk or opportunity that affects company profits and valuations.

tariff rate quotas regulatory

"Carbon Border Adjustment Mechanism (CBAM) and the upcoming Tariff Rate Quotas are important steps..."

A tariff rate quota is a trade rule that lets a set quantity of an imported good enter a country at a low or zero tariff, but raises the duty once that quantity is exceeded. Think of it like a concert with a discounted ticket limit: early arrivals pay less, while later ones pay a higher price. For investors, these quotas affect supply, domestic prices, profit margins and exporters’ access to markets, so they can influence revenue forecasts and sector competitiveness.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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17 June 2026, 13:15 CET

Three of Europe’s leading steelmakers - ArcelorMittal Europe, thyssenkrupp Steel, and voestalpine – are today issuing a joint call for urgent, pragmatic reform of the EU Emissions Trading System (ETS), warning that without adjustments the current trajectory risks destroying Europe’s industrial base.

In an article published in the Financial Times, ArcelorMittal executive chairman Lakshmi Mittal articulated the companies’ shared position on how the ETS needs to be reconsidered, to safeguard European steelmaking and all the industries it serves.

Together, the three companies represent around 60% of Europe’s integrated steel production, placing them at the heart of the EU’s industrial value chains. All three have committed to decarbonising their operations, but stressed that the policy framework must enable, not inhibit, these transformations of the steelmaking process.

ETS costs rising, without enablers in place

The three companies note that while the ETS has driven emissions reductions in the power sector (by about 49% between 2005 and 2023), it is not yet delivering a viable pathway for energy‑intensive industries such as steel. Key enablers for economic decarbonisation remain insufficiently developed or unavailable at scale, including competitive electricity prices, affordable green hydrogen, Carbon Contracts for Difference, carbon capture and storage, and lead markets for low‑carbon steel.

Under the current EU ETS framework, the cost of producing steel in the EU is expected to increase by around 50% by the early 2030s. With steel-intensive imports not subject to an equivalent carbon cost, and EU steel exports receiving no rebate to recover the carbon cost, the implications of the sharp increase in ETS costs will be profound for European steelmaking and the entire value chain.

A risk to Europe’s manufacturing backbone

The three companies estimate that without reforms to the ETS, the EU could face a 30–40% decline in steel‑intensive manufacturing activity, putting up to 5 million jobs at risk across the value chain.

Such an outcome would run counter to the EU’s ambition, which is set out in the Industrial Accelerator Act, to increase manufacturing’s share of GDP to 20% and would weaken Europe’s economic resilience at a time of intensifying global competition significantly.

Pause ETS cost increases until decarbonisation is economically viable

ArcelorMittal, thyssenkrupp Steel and voestalpine emphasise that they fully support Europe’s climate objectives and want to decarbonise. However, the ETS must be adapted to reflect the realities of industrial transformation.

The companies are jointly calling for:

• A temporary pause in ETS cost escalation, maintaining the current level until the key enablers of economically viable decarbonisation are in place.
• A framework that ensures first movers are supported, enabling early decarbonisation projects to proceed with confidence. ETS revenues should be directed toward industrial decarbonisation, ensuring funds accelerate the transition.
• A balanced approach to import and export competitiveness, addressing the unintended consequences of the current system.

The recent introduction of the Carbon Border Adjustment Mechanism (CBAM) and the upcoming Tariff Rate Quotas are important steps toward a level playing field. But the companies stress that ETS reform is the final piece of the puzzle needed to ensure Europe can both decarbonise and maintain a strong industrial base.

Marie Jaroni, CEO of thyssenkrupp Steel said: “The ETS needs a reality check. It does not reflect the current state of Europe’s industry, where competitiveness and transformation are becoming increasingly difficult to reconcile. That is why we need a cost pause in the ETS to safeguard the transformation and ensure that ‘first movers’ like us are not put at a disadvantage. The reform must help successfully bring climate protection and industrial development together for the future of Europe.”

Herbert Eibensteiner, CEO of voestalpine AG, said: “voestalpine is making significant investments through its greentec steel program and will drastically reduce emissions in the coming years. However, in a challenging economic environment, the phase-out of free allocation is already diverting financial resources needed for the decisive phase of transformation. A pause in the ETS framework, until enabling conditions are in place, is essential to safeguard these investments and enable further decarbonization steps.”

Lakshmi Mittal, executive chairman of ArcelorMittal, said:

“A future for the ETS that incentivises decarbonisation without compromising competitiveness must be found. It is not an easy problem to solve, but reform of the ETS is essential and we applaud Europe’s policymakers for putting the topic back on the agenda. The choice they face is not between climate ambition and competitiveness. The choice is between a climate strategy that strengthens Europe’s resilience and economic security, and one that hollows it out”.

Ends

About ArcelorMittal

ArcelorMittal is one of the world’s leading integrated steel and mining companies with a presence in 60 countries and primary steelmaking operations in 14 countries. It is the largest steel producer in Europe, among the largest in the Americas, and has a growing presence in Asia through its joint venture AM/NS India. ArcelorMittal sells its products to a diverse range of customers including the automotive, engineering, construction and machinery industries, and in 2025 generated revenues of $61.4 billion, produced 55.6 million metric tonnes of crude steel and 48.8 million tonnes of iron ore. Our purpose is to produce smarter steels for people and planet. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for the renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change.

ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).

 http://corporate.arcelormittal.com/ 

About thyssenkrupp Steel

thyssenkrupp Steel is one of the leading suppliers of high-grade flat steel and stands for innovations in steel and high-quality products for demanding applications.

Steel has a good 26,000 employees and produces about 11 million tonnes of crude steel per year – making it Germany’s largest flat steel manufacturer. Its capabilities range from custom material solutions to material-related services.

Together with our customers we continue to develop the long and successful story of our company, thereby shaping global markets, our region and a large number of powerful industries.

Steel fulfills the increasing demands for economical lightweight, growing construction and safety standards, researches and develops new high-tech steels and sets standards for high-quality surface and processing technologies as well as efficient steels for the energy and mobility revolution.

About voestalpine 

voestalpine is a globally leading steel and technology group with a unique combination of materials and processing expertise. voestalpine, which operates globally, has around 500 Group companies and locations in more than 50 countries on all five continents. The voestalpine Group has been listed on the Vienna Stock Exchange since 1995. With its premium products and system solutions, voestalpine is a leading partner to the automotive and machinery industries, as well as to the aerospace and energy industries. The company is also the global market leader in railway systems and special sections. voestalpine is committed to the global climate goals and has a clear plan for transforming steel production with its greentec steel program. In the business year 2025/26, the Group generated revenue of EUR 15.1 billion, with an operating result (EBITDA) of EUR 1.5 billion; it has around 48,800 employees worldwide. 

FAQ

What did ArcelorMittal (NYSE:MT) and partners announce on June 17, 2026 about EU ETS reform?

ArcelorMittal and two major European steelmakers called for urgent, pragmatic reform of the EU Emissions Trading System. According to ArcelorMittal, current ETS cost trends risk harming Europe’s steel competitiveness and industrial base unless rules are adapted to support economically viable decarbonisation.

Why are ArcelorMittal (NYSE:MT), thyssenkrupp Steel and voestalpine concerned about ETS impacts on European steelmaking?

They are concerned because ETS-driven costs could raise EU steel production expenses by about 50% by the early 2030s. According to ArcelorMittal, this cost surge, without matching enablers, threatens steel-intensive manufacturing and millions of jobs across Europe’s industrial value chain.

What specific EU ETS changes are ArcelorMittal (NYSE:MT) and others proposing for European steel?

They propose a temporary pause in ETS cost escalation until key decarbonisation enablers are in place. According to ArcelorMittal, they also want stronger support for first-mover projects, ETS revenues directed to industrial decarbonisation, and better-balanced import and export competitiveness mechanisms.

How many jobs do ArcelorMittal (NYSE:MT) and partners say are at risk under the current EU ETS framework?

They estimate up to 5 million jobs in Europe’s steel-intensive value chain could be at risk. According to ArcelorMittal, without ETS reforms the EU might see a 30–40% decline in steel-intensive manufacturing activity over time.

How does the EU ETS reform request by ArcelorMittal (NYSE:MT) relate to CBAM and Tariff Rate Quotas?

The companies view CBAM and upcoming Tariff Rate Quotas as important steps toward a level playing field. According to ArcelorMittal, they argue ETS reform is the remaining piece needed to align decarbonisation goals with a strong European industrial base.

How much of Europe’s integrated steel production do ArcelorMittal (NYSE:MT), thyssenkrupp Steel and voestalpine represent?

Together they represent around 60% of Europe’s integrated steel production, placing them central in EU industrial value chains. According to ArcelorMittal, this scale underlines the importance of EU ETS reforms for Europe’s broader manufacturing and decarbonisation objectives.