The Role of Subsidies in the Climate Transition of the Iron and Steel Industry
| Reference number | |
| Coordinator | RISE Research Institutes of Sweden AB |
| Funding from Vinnova | SEK 904 008 |
| Project duration | November 2024 - January 2026 |
| Status | Completed |
| Venture | Impact - Regulations and policy instruments for a sustainable industry |
| Call | Impact Innovation - Regulations and policy instruments for a sustainable industry |
Important results from the project
The project mapped the subsidies for the transition to low‑emission steel production in the EU and analysed their significance for the sectors´ development. The findings reveal large variation in support levels across projects, but also that subsidies have often been critical for reducing financial risks and enabling major investments. The results also highlight the importance of reliable infrastructure, competitively priced fossil‑free electricity and predictable conditions for hydrogen supply.
Expected long term effects
The project has resulted in a knowledge base that can be used by political decision-makers to develop effective and efficient instruments that enable the industrial transition. By clarifying how Swedish support levels for the low carbon steel projects compare to other EU countries support, the results can contribute to a more strategic design of future support programs and thereby strengthen Sweden´s position in the European transition.
Approach and implementation
The project has mapped and analysed the role of subsidies in the transition of the iron and steel industry in the EU to low-emission steel production. The project has applied a mixed-methods approach combining quantitative data collection with qualitative interviews and policy analysis. The work has been carried out in close collaboration between research actors and industry partners to ensure relevance and practical applicability.