The European Emissions Trading System (ETS) is under significant pressure from member states due to sharply rising energy costs driven by the tightening supply of certificates, with prices tripling from around €25/t CO2 in 2019 to approximately €75/t in 2025. With the ETS scheduled for a major revision by July 2026, several EU countries led by Italy recently called for the review process to be suspended. Last week, Polish President Karol Nawrocki went a step further, urging his government to advocate for the complete abolition of the ETS to prevent further industrial relocation outside the EU. Industry experts note that any modification, suspension, or national exemption of the ETS would have immediate and direct consequences for the Carbon Border Adjustment Mechanism (CBAM).

Italy’s crude steel production increased by 8.1% month-on-month in February 2026, signaling a recovery in Southern European industrial activity. This rebound follows a period of stabilization and reflects improved demand from domestic manufacturing and construction sectors as energy price volatility subsides. The increase in output from Italian mills contributes to a moderately positive outlook for non-Chinese steel demand in 2026, which is projected to grow as interest rates decline and borrowing costs for major infrastructure projects soften globally.

【SMM Steel】Talks between Thyssenkrupp and Jindal Steel over TKSE since autumn continue with no formal offer yet. US fund Flacks Group said it is prepared to bid if current negotiations fail. Flacks, focused on distressed assets, was picked by Italy for exclusive talks on Acciaierie d'Italia in Dec. It remains focused on Italy but monitors major steel firms.

European solar auctions and corporate PPAs added 92 GW of new capacity between 2022 and 2025, according to SolarPower Europe. After earlier struggles, auction-driven deployment rebounded to a record 25.2 GW in 2025, a 23% year-on-year increase. Meanwhile, corporate PPAs saw mixed results across the continent—dropping 56% in Germany but remaining strong in Spain, Italy, and Poland. Despite utility-scale growth, total EU solar installations in 2025 experienced a slight 0.7% decline to 65.1 GW. This marks the first annual drop since 2016, driven primarily by softened residential demand. With total capacity now at 406 GW, industry reports warn that reaching the bloc's 750 GW target by 2030 will require renewed policy support to address 'persistent inefficiencies' in auction designs.

According to information from Italian trade unions, the battery joint venture ACC has halted plans to build gigafactories in Germany and Italy. Established in June 2020, ACC was jointly formed by three industry giants: the Stellantis Group, Mercedes-Benz, and TotalEnergies, with Stellantis being the largest shareholder. The enterprise originally planned to establish three gigafactories in Europe, located in France, Germany, and Italy, with a total investment of approximately €7 billion. The goal was to increase ACC's battery capacity to at least 120 GWh by 2030. However, the projects in Germany and Italy have been on hold since May 2024. Following this announcement of termination, only the battery factory in France will remain operational.

Recently, battery joint venture ACC has terminated its plans to build super battery plants in Germany and Italy. The decision to suspend the construction of battery plants in Germany and Italy was made due to considerations of shifting from nickel-based battery chemistry to lithium iron phosphate battery technology. The company had previously planned to build three super plants in Europe — in France, Germany, and Italy — with a total investment of approximately 7 billion euros. The goal was to increase ACC's battery production capacity to at least 120 GWh by 2030. However, the projects in Germany and Italy have been on hold since May 2024. With this announcement of termination, only the French battery plant will remain operational.