Spanish steelmakers seek €43m increase in indirect carbon cost compensation

Spanish steel association Unesid is seeking higher compensation for indirect carbon emission costs, arguing that the €157 million allocated for 2026 is insufficient to protect the sector’s competitiveness. GMK Center, citing reporting by Demócrata, said the association puts steel companies’ requirements at no less than €200 million, leaving a €43 million gap against the current allocation.

Unesid argues that the shortfall weakens producers’ ability to absorb rising energy costs and puts Spanish industry at a greater disadvantage. The association says compensation in most European countries covers all indirect costs linked to CO₂ emissions. It presents the higher funding request as necessary to enable Spanish steelmakers to compete with other European producers, rather than as a request for preferential treatment.

Director general Carola Hermoso said the purpose of the support should be to help sustain industrial operations in Spain. According to GMK Center, Unesid’s preliminary estimate puts the Spanish steel sector’s energy costs for March to December 2026 at €658 million. Against that projected bill, Hermoso called for urgent measures to reduce pressure on companies, alongside a more stable and predictable approach to energy and industrial policy.

The association’s proposals extend beyond increasing the compensation allocation. It also wants budget planning that gives producers greater certainty over the medium term, as well as an enduring reduction in electricity charges for large consumers. These demands combine a call for additional support in the current year with a request for clearer arrangements governing future energy-related assistance.

The latest appeal follows Unesid’s June 2026 call for electricity tax relief to be extended, GMK Center reported. At that time, the association also warned that high energy costs were undermining the sector’s competitiveness. Its requests to the government included increasing compensation for indirect CO₂ costs to the highest levels allowed under EU legislation, making the current funding dispute a continuation of its push for stronger electricity-cost support.