A European Commission proposal on protective measures for the EU steel industry could impact the bloc’s efforts to meet 2030 renewable energy targets, according to trade body WindEurope.
EU countries will tomorrow discuss the proposals, which would restrict steel imports from third countries to the EU until July 2021, and vote on them on Friday.
The measures would mean import volumes per steel category will increase by just 5% every year until 2021, with import volumes set based on a mixed system of global and country-specific tariff-rate quotas.
They are in response to similar restrictions imposed in the US by President Donald Trump.
WindEurope chief executive Giles Dickson said: “It’s good the Commission have opted for an annual increase in the steel import volumes.
“But 5% is very low: we expect demand for steel in offshore wind alone to rise by 36% in 2019.
“It’s in nobody’s interest for access to steel volumes to turn into a scramble for raw materials with other sectors like we’re all chasing seats in musical chairs.
“Not least when our own sector has binding EU renewables targets it’s got to help meet.”
He added that if tariffs are imposed on steel imports then the price of wind energy would rise.
“Steel makes up over half the material used in wind turbine production. Tariffs could add 18% to the price of turbines,” Dickson (pictured) said.
“This would offset the cost reductions we’ve achieved in recent years. And mean achieving the EU’s 32% renewable energy target for 2030 will cost society more than is necessary.
“And it would put European turbine manufacturers at a disadvantage to Chinese competitors that source domestic steel at much lower prices.
“We call on European countries and the Commission to agree a higher annual rate of increase in non-tariff volumes than the proposed 5% when they vote on Friday.”