Statement on the revision of the CO2 standards for cars and vans – 2025/0420(COD): Political Priorities of the Steel Industry in the Development of a Lead Market in the Automotive Sector
10 September 2026 | The German Steel Association welcomes the European Commission’s proposal to revise the CO₂ standards for cars and vans. The Commission has put forward a cross-sectoral approach linking climate protection with industrial competitiveness. By introducing a low-carbon steel credit allowing automotive manufacturers to offset up to 7% of fleet emissions, two strategic sectors can support each other in their decarbonisation processes, while establishing the first private sector lead market for low-carbon steel produced in the EU (see Annex Fig. a).
Ongoing discussions in the EU Parliament and Council to bring forward the start date for credit eligibility are highly supported (see Annex Fig. b). European steel producers are ready to satisfy low-carbon steel production demands in Europe by 2030 at the latest, thereby offering flexibility to car manufacturers and enabling significant CO₂ savings to be achieved in line with the gradual transformation of the steel industry.
At the same time, several proposed amendments (e.g. Annex Fig. c) risk diluting the intended demand impact of the mechanism. To safeguard the effectiveness of the credit for low-carbon steel made in the EU and to ensure the Commission’s original objective, the German Steel Association emphasizes three key aspects:
(1) Keep the credit shares set out in the Commission proposal,
(2) Preserve an exclusive steel credit share,
(3) Restrict steel credit eligibility exclusively to EU27 + EFTA steel producers
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