Welcome to the April edition of the European Metals newsletter!
The start of this year has been a notable period for the EU Emissions Trading System (ETS), with growing attention on this flagship climate policy. Across Europe, both governments and industry have expressed shared concerns about its impact on competitiveness. I would not have expected a Commission President to so prominently highlight technical aspects such as ETS fallback benchmarks in multiple speeches—yet this is a sign of the times.
Whether Commission President Von Der Leyen fully understands these complexities, and how far stakeholder views will be taken into account, will become clearer when the measures are introduced later this month. Our Energy Director, Adina Georgescu, has the insight and comment on the forthcoming changes to the ETS and the likely impact for our industry.
It’s a must read!
This week, European Metals was also strongly represented at the highly engaging and important Helsinki Chemicals Forum (HCF), where we participated in a panel discussion on the future of battery production in Europe. As a key event in the European chemicals policy agenda, the Forum is central to our engagement on critical topics such as REACH and places us at the heart of ongoing policy discussions. We also took the opportunity of being in Finland to visit our member Nornickel Harjavaltaand their highly efficient smelting plant.
With this edition of the newsletter, we are also opening registrations for our Annual Conference “Are We Forging a Future in Europe?”, which will take place on 24 June at the Renaissance Hotel in Brussels. You can register from today via the link in the Events section below.
Finally, we are preparing the next edition of our Metals Academy, where experienced members of the non-ferrous metals community, alongside experts from the broader European scientific and policy landscape, will share their knowledge with the next generation of metals leaders. It is a truly outstanding educational platform, and I am proud that European Metals continues to play a leading role in shaping the future of our industry.
Enjoy the reading and as ever if you want to catch up on any issues that are raised in the newsletter, or on the European Metals sector in general, feel free to reach out to me at watson@european-metals.eu
Editorial
“May you live in interesting times.” The saying has rarely felt more appropriate than in describing the present era. For Europe’s metals industry, the past six years have certainly lived up to that description. The COVID-19 pandemic, the 2022 energy price shock, the war in Ukraine, persistent inflation, and a general economic slowdown have all left their mark. Now, renewed geopolitical tensions, including the US-Iran conflict, adds further strain to already volatile energy markets.
These overlapping developments are shaping what increasingly feels like a new normal for our sector: structurally high energy costs, shifting trade conditions, supply chain disruptions, and a general sense of uncertainty. None of these factors is entirely new on its own, but their cumulative effect is significant. For an industry that is both energy-intensive and globally exposed, the margin for absorbing additional cost pressure is paper-thin.
Against this backdrop, regulatory pressures are also intensifying. The reform of the EU Emissions Trading System under the Fit for 55 package is now being implemented, and its effects are becoming increasingly visible. Production costs are expected to rise further, due to increased carbon pricing and reductions in benchmark values. In particular, heat and fuel benchmarks are projected by the European Commission to decline substantially - potentially by as much as 50%. While the objective of emissions reductions is clear and widely supported, the scale and speed of this adjustment raise legitimate questions about feasibility for certain industrial processes.
This is especially relevant for activities such as metals recycling and alumina refining, which are explicitly prioritised under EU initiatives like the Critical Raw Materials Act or the upcoming Circular Economy Act. The contradiction is difficult to ignore: on the one hand, these sectors are recognised as strategic for Europe’s climate and industrial ambitions; on the other, they face significantly increased production costs.
The key challenge lies in the heat and fuel benchmark methodology itself. By grouping very different installations - ranging from cogeneration plants and food processing to metals recycling - into a single category, the system compares processes with very different technical characteristics. As a result, benchmark levels are set by the lower-emission installations using biomass. For non-ferrous metals processes, matching these emissions levels is not technically or economically realistic.
The practical consequence is a steep reduction in free allocation, increasing exposure to carbon costs at a time when energy prices are already elevated. This combination weighs heavily on investment decisions, competitiveness and even on the continued operation of certain installations.
None of this questions the EU ETS as a cornerstone of European climate policy. The issue is one of calibration. If benchmarks are to serve as meaningful incentives for emissions reduction, they need to reflect achievable best-in-class performance within comparable industrial activities.
Europe’s policy challenge is therefore not to choose between climate ambition and industrial competitiveness, but to ensure that the two remain aligned. Fine-tuning the methodology behind benchmark setting would be a good, practical step in that direction - one that acknowledges both the diversity of industrial processes and the shared objective of reducing emissions in a technically and economically viable way.
Helsinki Chemicals Forum and visit to Nornickel Harjavalta
This week, European Metals was in Helsinki for the Helsinki Chemicals Forum, one of the leading international platforms dedicated to chemicals safety, regulation, and sustainable management. The Forum brings together policymakers, regulators, industry leaders, researchers and civil society for two days of high-level dialogue on the future of chemicals policy.
Our Director James Watson officially inaugurated the European Metals exhibition booth and spoke in the panel “Aligning Battery & Recycling Regulations to Maximize the Reuse of Critical Materials”, highlighting themeasures neededwithin the regulatory framework to accelerate projects and reduce complexity.
The team’s visit to Finland also included a tour of Nornickel Harjavalta. Thanks again to Joni Hautojärvi, Juha Parkkinen, Irina Kachelina, and Monika Kuusela for their warm welcome, insightful discussions on the nickel market, and for showing us around their facilities.
These exchanges play a crucial role in fostering collaboration and sharing knowledge - key elements in shaping the future of the sector.
If you would like to organise a site visit with us, feel free to get in touch:bassan@european-metals.eu
Metals Academy
This 5th edition of our highly successful Metals Academy will take place from 4 to 7 May 2026, and preparations are already well underway! This year, we are pleased to welcome 30 participants and 17 speakers.
Over four days, participants will have the opportunity to engage with a wide range of expert speakers and learn more about several key topics, including:
– Introduction to Metals – The Metals Age, exploring the role of metals in the green and digital transition, as well as the balance between their use and sustainable, responsible resource management – The Energy Transition, highlighting the contribution of the metals sector through practical case studies from producers, recyclers, and mining companies – Metals “Also Tomorrow”, focusing on future challenges and how to meet society’s ethical expectations with the right skills.
On two afternoons, participants will have the opportunity to choose and attend two smaller group modules covering key elements in chemicals management, metals marketing, and communication.
In addition, we will welcome a keynote speaker who will deliver a talk on “Business Meets Diplomacy.”
Participants will be welcomed in beautiful green surroundings and will enjoy a range of extra-curricular activities, valuable networking opportunities within the metals community, and—last but not least—the renowned Belgian hospitality.
For more information, please contact Ailsa at lee@european-metals.eu
For more details, explore the full programme here.
Meet the Team - Five Questions with Joe
1. Could you briefly introduce your background and the academic path that led you to sustainability and EU environmental law?
My academic path began with a Bachelor of Law at the University of Aberdeen in Scotland. Following this, I wanted to focus my studies on sustainability and EU environmental law, which led me to complete a Master’s in European Law with a focus on sustainability in Europe at Utrecht University in the Netherlands.
My passion for natural environment and interest in environmental policy inspired me to pursue a career within sustainability and shaping legal frameworks promoting sustainable and environmental practices within EU industries and policy.
2. What inspired you to begin your professional journey with our Sustainability team?
I was particularly drawn to the sustainability team because of their impact and work on circular economy and critical raw materials. I was interested in the opportunity to work on critical raw materials policy and interact with members of the raw materials industry. I was also interested in contributing towards sustainable and circular initiatives in the non-ferrous industry and contribute towards shaping sustainable legal frameworks for these industries.
3. Which aspects of your internship are you finding most engaging or rewarding so far?
The EU Taxonomy has been particularly interesting to me. After developing an interest through academic courses on sustainable finance, it has been rewarding to contribute to working with members on their positions in consultations on the EU Taxonomy delegated acts.
4. How do your interests in critical raw materials, the circular economy, and sustainability policy align with your current role?
My legal background and interest in critical raw materials and circular economy can be particularly insightful given the current demand and focus on critical raw materials within EU policy. For instance, I am particularly interested in critical raw materials recovery after completing my master’s thesis on this topic and can bring a proactive approach on working with members and the Critical Raw Materials Act.
I am excited to bring a good understanding of EU environmental law and contribute towards the sustainability team on critical raw materials, EU taxonomy and sustainable EU industry policy.
5. Looking ahead, where do you see yourself building your career in the coming years, and what impact would you like to make?
My primary focus in my career is to make a contributable effort towards improving and advocating for circular economy and sustainability within EU policy and European industry. I hope to contribute towards shaping EU policy and legislation in improving the climate transition towards net zero and in developing a sustainable and competitive European industrial sector.
Members News:
KGHMhas highlighted a significant milestone in the development of its Chilean operations, as the Sierra Gorda mine continued to strengthen its operational and financial performance. The company has now recognised the value of its investment in Sierra Gorda, reflecting the mine’s improved outlook and its growing strategic importance within KGHM’s international asset portfolio.
A delegation from Australian Critical Minerals R&D Hub visited Nyrstar's Auby. Through this partnership, Nyrstar is driving progress in by-product recovery, building momentum for international collaboration, and supporting Australia’s, France’s and Europe’s shared low-carbon and economic resilience goals.
Joint event: Hot metal, warm homes. Recovering metal industry’s excess heat for affordable, sustainable heating | 17 March 2026, European Parliament (Brussels) – closed-door event
Jointly organised by European Metals and Euroheat and Power and hosted by MEP Benedetta Scuderi, this closed-door roundtable discussion presented concrete waste heat recovery projects, and explored how the Heating & Cooling Strategy and Clean Industrial Deal State Aid framework can support the replication of such projects in the future.
With the Industrial Accelerator Act proposal now published, this webinar examined its potential impact on Europe’s industrial landscape, with a focus on critical raw materials and supply chains. The event featured insights from EU institutions, industry representatives and NGOs, with a Keynote speech by Aleksandra Kordecka, Expert, Cabinet of Executive Vice-President Stéphane Séjourné.
In case you missed it, the full recording is availablehere
Join industry leaders and experts at this symposium focused on implementing the 2021 Drinking Water Directive (DWD) new EU conformity system for materials & products in contact with Drinking Water. With the new EU system entering into force in January 2026, this event offers a critical forum to explore the regulatory challenges and find compliant solutions. Benefit from expert-led sessions and tailored breakouts with EU regulators and national authorities.
The event is jointly organised by European Metals, European Drinking Water and EurEau.
Building on the success of the 2025 inaugural edition, we are pleased to announce the second edition of our Annual Conference “European Metals: Are We Forging a Future in Europe?”.
This high-level event will bring together policymakers, industry leaders and experts to assess the impact of EU initiatives on the sector, identify remaining gaps, and explore the conditions needed for the non-ferrous metals industry to thrive in a circular EU economy.
Registrations are officially open! Don’t miss your chance – click below to join us.
The ARE Energy Access Investment Forum (EAIF) is the top annual investment event, fostering partnerships for the purpose of renewable electrification, including energy access, productive use, commercial & industrial uses of power and the green energy transition.
European Metals members are entitled to a discount on registration.
Metal Recycling Expo is the world's leading trade show and conference for recycling and reusing critical raw materials and metals, with a focus on technological manufacturing innovations and circularity processing. This technology-driven event brings together recyclers, manufacturers, engineers, and industry leaders focused on securing and strengthening the global critical raw materials supply chain and promoting circular practices.
Join thousands of professionals at this two-day, free-to-attend expo and conference to connect with supply chain experts, the biggest recyclers, technology innovators, and decision-makers shaping the future of this critical industry.
Our Director General Dr James Watson will present on the challenges and opportunities of the EU's latest aluminium scrap export policies, and our Head of Sustainability Laura Fazio Bellacchio will present on the Circular Economy Act.
