Heavy Industry: Why Steel and Aluminium are the Foundation of Circularity

Iron, steel, and aluminium are the first intermediate products to be regulated under the ESPR, with delegated acts arriving as early as 2026. Because these metals are infinitely recyclable and critical to the automotive and construction sectors, they are being used as a lever to decarbonize the entire EU economy.

The business rationale is clear: by mandating transparency in material origin and carbon footprint, the EU is creating a protected market for high-quality, low-carbon industrial goods.

Key Regulatory Impacts for Industrial Metals

  • Lifecycle Footprinting: Mandatory disclosure of carbon emissions per tonne of product through the DPP.

  • Secondary Material Mandates: Potential minimum requirements for recycled scrap content to boost EU resource independence.

  • Public Procurement Leverage: EU governments will be legally required to favor products with the best sustainability profiles in public contracts.

Industrial Materials: Before vs. After ESPR

Metric

Traditional Steel/Alu

Circular Industrial Metals

Origin Data

Generic mill test reports.

Full traceability from raw material acquisition to final coating.

Carbon Disclosure

Voluntary or estimated.

Audited, product-specific carbon footprint via DPP.

Recycled Content

Market-driven based on price.

Regulated minimums to ensure high-purity sorting.

Strategic Advice: How to Prepare

  1. Digitize Quality Certificates: Transition your physical mill reports into machine-readable JSON-LD format. This data will form the core of your industrial DPP.

  2. Audit Energy Intensity: Since energy efficiency is a key parameter, invest in process heat recovery and green hydrogen readiness to stay below the performance thresholds expected in 2026.

  3. Review Scrap Procurement: Secure long-term supply agreements for high-purity secondary materials now to meet upcoming recycled content mandates.

To discuss your industrial transition strategy, reach out to info@dpp-link.com

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Textiles and Apparel: Navigating the July 2026 Regulatory Cliff