Statement on The Industrial Accelerator Act (IAA)
06 May 2026 | The Industrial Accelerator Act (IAA) marks an important step in the EU’s ambition to build lead markets for low-carbon industrial products. The German Steel Association had placed high expectations in this initiative as a decisive instrument to incentivise domestic transformation investment, to strengthen European industrial resilience, and to create real demand for low-carbon steel made in EU. However, while the IAA sets a broadly appropriate strategic direction in this regard, its scope remains insufficient to drive the systemic change required.
The IAA represents an important step towards promoting lead markets. Nevertheless, it does not yet establish a mandatory link between low-carbon criteria and Union origin requirements for steel. A connection that is indispensable if the regulation is to achieve its stated objectives, namely fostering a resilient and low-carbon EU industry.
The frequently put forward argument that the EU steel industry is already protected by the new trade defence instrument (based on tariff quotas) coming into effect on 1 July is not convincing. This is because the new trade defence instrument merely addresses the problem of overcapacity in non-EU countries, whereas preferential rules are intended to stimulate low-carbon steel production in the EU.
Furthermore, a static minimum share of 25% low-carbon steel in public procurement does not reflect the stepwise nature of the industry’s transformation and risks leaving low-carbon steel a niche product rather than becoming the market standard. A clear trajectory of increasing minimum share for the demand of low-carbon steel is therefore crucial to align market incentives with this transformation path, give producers the confidence to take investment decisions as low-carbon capacities in Europe are scaled up.
Without a credible lead market framework, the investment case for low-carbon steelmaking in Germany and across the EU is weakened at precisely the moment when it needs to be strengthened. The German Steel Association calls therefore on the European Parliament and Council to consider the following points:
- Unconditionally link low-carbon criteria with Union origin requirements in public procurement, funding schemes, and support instruments, as in other sectors.
- Define Union origin consistently across article 7, 8, and 9 and with regard to steel strictly as melted and poured in EU27 + Member States of the European Free Trade Association (EFTA).
- Increase the share of low-carbon steel over time to incentivise the stepwise transformation of the steel industry and extend requirements to technologies under the Net Zero Industry Act (NZIA), strategic components and appropriate sectors.
Lay the foundation for a credible steel label: compatibility with existing industry standards and labels, inclusion of Scope 1, 2, and 3 upstream emissions, and hot-rolling as the system boundary.
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