Industrial Accelerator Act raises questions for European steel
On March 4, the European Commission published the Industrial Accelerator Act (IAA), a proposed regulation aimed at reviving European manufacturing — and countering deindustrialization — by combining competitiveness with decarbonization. For the steel and metals processing sector, the stakes are high, and industry reactions range from cautious optimism to concrete concerns.
Lead markets and public demand for low-carbon steel
At the heart of the proposal are so-called "lead markets": public spending is to be steered toward low-emission materials, with a minimum share of low-carbon steel in public procurement and other forms of public support. The proposal also introduces a single digital permitting system and "Industrial Acceleration Areas," where strategic projects can benefit from faster authorization procedures.
The political headline is the strengthening of European preference in public purchasing. Yet this is precisely where the sharpest criticism is directed. In the current text, the requirement for steel covers only low emissions — not the European origin of the product. The proposal sets a minimum threshold of 25% low-carbon steel in public contracts. According to the industry, however, the real-world impact would be limited, affecting less than 5% of the total steel market.
Industry pushback
Eurofer, the European steel association, is calling for a clear "Made in Europe" definition based on where the steel is melted and cast rather than the nationality of the producing company. BusinessEurope warns that the proposal "can create new problems if not well balanced," while Eurochambres — broadly welcoming the overall framework — cautions that Made in Europe criteria in procurement must be "clear and proportionate, especially for SMEs," in the words of president Vladimír Dlouhý, or risk piling additional costs onto businesses already struggling with high energy prices and a fragmented single market.
A signal from the ground
Italy offers a telling example of the tensions at play. Despite showing resilience — domestic steel output reached 1.7 million tonnes in January 2026, up 1.6% year-on-year — the sector remains under pressure from energy costs and non-European competition. Federacciai president Antonio Gozzi called the IAA "yet another missed opportunity," pointing to the absence of Made in Europe criteria for steel — while such provisions are included for materials like aluminium and cement — and flagging the weakening of provisions on scrap, a strategic resource for green steelmaking.
The proposal now enters the legislative process, requiring approval from both the Council and the European Parliament. It is there that the industry will find out whether its concerns are heard.
Image by fanjianhua - Freepik
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