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ArcelorMittal and EIB announce €280m in funding for research and innovation supporting ArcelorMittal’s decarbonisation objectives

The €280m loan granted to ArcelorMittal by the European Investment Bank (EIB) aims at supporting ArcelorMittal’s European research and development programme and the associated capital expenditure in the fields of environmental, climate, and energy projects over the period 2021-2023.

It will help the group reach its ambitious climate action goals and thus reduce the environmental footprint of its manufacturing facilities, steel products, and technological solutions. ArcelorMittal Europe has committed to reduce CO2 emissions intensity by 35% by 2030, with the ArcelorMittal group having set a 2050 net-zero emissions target.

Research & Development as the engine to reduce carbon emissions

This partnership between the EIB and ArcelorMittal is backed by the European Fund for Strategic Investments (EFSI), the central pillar of the Investment Plan for Europe.  In general, at least 40% of EFSI infrastructure and innovation projects aim to contribute to climate action in line with the Paris Agreement. This project will also contribute to EU industry’s leadership as a provider of high-tech steel grades, products, and solutions.

New products, process improvements, and technical solutions are expected to bring significant positive environmental results in terms of direct and indirect greenhouse gases emission reduction.

The research and development activities supported through the new investment will be carried out primarily in ArcelorMittal’s existing R&D facilities in France, Belgium, Luxembourg, and Spain.

Innovation is key - and important for Europe's steel industry

Greg Ludkovsky, Vice-President of ArcelorMittal and Head of Research and Development, said: "This funding will help Global R&D to further enable ArcelorMittal’s ambitions to reduce its environmental footprint in terms of its operations and its products. We will be able to expand our work to develop environmentally sustainable, high-added value, cost-effective, and disruptive products and manufacturing processes."

Ambroise Fayolle, EIB vice-president underlined the fact that "the signing of this agreement between the European public bank and ArcelorMittal will support a major European player in the steel industry with a deep focus on higher value-added steel products. These investments will play a key role in ArcelorMittal’s carbon footprint reduction strategy and therefore contribute to the European green deal, aligned with the terms of the 2015 Paris Agreement on climate change.

Kris Peeters, Vice-President of the EIB, said: "The steel sector is a vital sector for the European economy. As no other sector, the steel sector is faced with the need to constantly reinvent itself and make its production processes more efficient and less burdensome vis-à-vis the environment. This requires a constant investment in innovation."