Environmental and socio-economic impacts of the circular economy transition in the EU steel sector: analysing steel material flows with life cycle-based and macroeconomic assessment models

Abstract

The EU steel sector can reduce greenhouse gas emissions by 64-81 Mt CO2-eq. annually by 2050 through circular economy (CE) measures. CE can also significantly decrease EU demand for ores and energy products, leading to a EUR 7 billion annual increase in the EU trade balance with significant imports reduction from China, US, UK, and Russia. However, this may come with trade-offs such as reduced employment and gross value added, which need to be further studied. The study's findings are policy-relevant, highlighting the need for a holistic approach and policy mix to materialise CE potential and informing EU policymakers on strategies to support the steel sector's sustainable transition.