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The steel industry plays an essential role in the national economy, and Romania can become a regional leader in sustainable steel production, but blockages in public policies and unclear regulations limit the use of European funds, maintain high energy prices and generate uncertainty for investors, reveals a specialized report launched on Monday by the Energy Policy Group (EPG).
EPG specialists draw attention to the fact that Romania must urgently adopt concrete measures to support the steel industry, a sector that faces major challenges, similar to those in the entire European Union, namely high energy costs, intense external competition and fluctuating demand.
“The Romanian steel industry faces major challenges, similar to those across the EU: high energy costs, intense external competition and fluctuating demand. As one of the few countries in Central and Eastern Europe with primary steel production, Romania has a sector that is essential for the economy and jobs. Its competitiveness is threatened by volatile energy prices, the lack of a market for green steel and difficult access to finance. The transition to low-emission production requires affordable green energy, process transformation and substantial investments,” says the report “Ensuring the Long-Term Competitiveness of the Romanian Steel Industry”.
According to the study, Romania has strategic assets to support this transformation, such as significant renewable energy potential, a strong automotive sector and an expanding infrastructure. However, policy bottlenecks and unclear regulations limit the use of EU funds, keep energy prices high and generate uncertainty for investors. Delays in planning hydrogen infrastructure and the lack of reliable supply chains for quality scrap metal further affect the sector.
Given the pressure to compete in a low-carbon European industrial environment and new European initiatives, such as the Clean Industrial Deal and the upcoming Steel and Metals Action Plan, Romania urgently needs to adopt concrete measures to support the steel industry, EPG states.
Priority actions include: rapidly expanding renewable energy production capacity; developing hydrogen infrastructure; classifying scrap metal as a critical resource; efficiently absorbing EU funds; creating new financing and risk reduction instruments; attracting private investment; developing markets for green steel in key sectors such as construction, automotive and shipbuilding.
“The Romanian steel industry plays an essential role in the national economy and can become a regional leader in sustainable steel production. With adequate support from the authorities and the implementation of coherent policies, the green transition can be a real opportunity for the competitive development of the sector,” the document states.
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