The Green Burden: Why the Steel Industry Cannot Rely on Hydrogen and Green Energy as a True Alternative

Abstract

This article critically examines the economic and operational burden imposed on the European steel industry by current decarbonization policies and green transition targets. While European Union climate regulations increasingly prioritize low-emission technologies, their practical implications for energy-intensive sectors such as steelmaking remain underexplored. Through a comparative analysis of cost structures, production routes, feedstock availability, and regulatory frameworks, the study highlights the impact of emissions reduction mandates, carbon pricing mechanisms, and policy uncertainty on industrial competitiveness, investment stability, and supply chain dynamics. Particular emphasis is placed on the role of Europe’s energy mix, the reliability of renewable electricity sources, and a realistic evaluation of hydrogen as a proposed energy carrier. The findings suggest that the accelerated push toward a “green” transformation risks undermining Europe's industrial foundation without delivering commensurate environmental or economic gains. The article calls for a reassessment of prevailing climate strategies, emphasizing the need for realism - anchored in improved energy efficiency, support for research into more feasible technologies, and policies that promote both social and economic sustainability.