The Role of Subsidies in the Climate Transition of the Iron and Steel Industry

Purpose and goal:

The goal is to map subsidies for actors in the EU iron and steel industry for the transition to low-emission steel production, to identify differences and similarities in how various countries apply subsidies and other instruments. The aim is to study how subsidies affect the transition and the industry’s competitiveness. Special focus is on how these supports impact the Swedish iron and steel industry and on providing a basis for future policy development in Sweden and the EU.

Expected results and effects:

The project is expected to provide a mapping of subsidies directed at the iron and steel industry in the EU. This will give industry actors and Swedish policymakers a better overview of international subsidies, which can be used as a basis for decision-making. By identifying key factors for a faster transition to low-emission steel and potential risks of distorted competition, the project can contribute to more effective policy design.

Approach and implementation:

The project is led by RISE and is carried out together with Chalmers, Jernkontoret, Stegra and SSAB. During the project, quantitative data will be collected on subsidies aimed at conversion to low-emission steel. The impact of subsidies and other policy instruments on restructuring and competitiveness will also be examined through interviews with industry actors. Finally, the collected information will be analyzed and compared between countries to formulate policy recommendations.