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A recent report from Steelwatch.org has raised concerns about ArcelorMittal, one of Europe’s largest steel manufacturers, failing to meet its own emissions reduction targets for 2030. Despite publicly committing to significant decarbonization, the company appears to be delaying key carbon reduction measures until after the 2030 deadline.
Investment Imbalance: Profits Over Progress
Between 2021 and 2024, ArcelorMittal generated nearly $33 billion in operating cash flow. However, only $800 million – less than 2.5% of this amount – was invested in decarbonization efforts. In stark contrast, the company's shareholders received a massive $12 billion in dividends over the same period, highlighting a clear prioritization of profit over sustainability.
Subsidies Without Commitment
Steelwatch.org also revealed that, despite receiving over $3.5 billion in government subsidies for five decarbonization projects in Europe and Canada, ArcelorMittal has yet to make any final investment decisions on these critical projects. This gap between funding and action raises serious questions about the company's commitment to reducing its carbon footprint.
Continued Dependence on High-Emission Technologies
The report further criticizes ArcelorMittal’s ongoing reliance on carbon-intensive blast furnaces, noting that the company has made only marginal reductions in CO2 emissions in recent years. Additionally, the steel giant consistently excludes its joint ventures from its climate impact reports, despite these ventures reportedly emitting 25 million tonnes of CO₂ annually – a significant oversight in the context of global climate goals.
A Flawed Green Deal?
This situation casts a harsh light on the EU’s ambitious climate agenda. While European steel producers benefit from protective Trade Defence measures, the Carbon Border Adjustment Mechanism (CBAM), and substantial subsidies, their progress toward actual emissions reductions remains slow and uncertain. Despite years of regulatory support, the CO2 intensity of European crude steel has changed little since 2014, raising doubts about the effectiveness of voluntary climate pledges.
In summary, ArcelorMittal’s current approach to decarbonization – characterized by delayed investments, incomplete disclosures, and heavy reliance on subsidies – stands in stark contrast to the urgent need for climate action. Without a more decisive shift in priorities, the company risks undermining both its long-term competitiveness and the EU’s broader climate goals.
