Decarbonisation targets, energy volatility and new production technologies are creating urgent challenges in energy-intensive industries (EII) like steel and aluminium. Drawing on the latest EIT Manufacturing report*, here’s what EII industry leaders should consider.
2-3× cost of electricity in EU versus US: a structural disadvantage | 40-70% sales price premium for low-carbon steel – if producers can prove it | 53% of businesses understand their supply chain’s energy use – the data gap is large |
3 KEY CHALLENGES
Legacy production systems hold back data visibility
- Most businesses lack visibility into supply chain energy use and carbon intensity
- Production processes are not designed to respond to fluctuating renewable energy
- New assets like electrolysers and carbon capture systems require monitoring capabilities most operators have not yet built
Lack of data infrastructure for decarbonisation
- CBAM (Carbon Border Adjustment Mechanism) compliance requires detailed carbon tracking across operations and supply chains
- Low-carbon product claims need verifiable data to command a price premium from buyers
- Digital product passport requirements are coming, but most operators are not ready
Critical skills gaps in the workforce
- Critical shortages in data science, AI and cybersecurity skills across industrial operations
- Reskilling demand is rising with the shift towards electric arc and hydrogen-based production
- Digital capability is concentrated in large operators, with most of the supply chain lagging
3 THINGS INDUSTRY LEADERS CAN DO
Accelerate operational digitalisation
- Deploy AI-driven energy management to synchronise production with renewable power availability and cut peak costs
- Build end-to-end supply chain visibility across energy use and carbon intensity
- Invest in digital monitoring and control infrastructure for new assets ahead of deployment
Start building decarbonisation data
- Implement carbon tracking and reporting systems to meet CBAM obligations and ESG disclosure requirements
- Use digital product passports to underpin green premium pricing with verifiable data
- Integrate sustainability data into operational planning – not just compliance reporting
Make smart investments in your workforce
- Audit digital skills gaps against future process requirements and build structured reskilling paths
- Extend digital capability programmes beyond large operators into the wider supply chain
- Treat IT/OT cybersecurity as an operational priority, not an IT function
Moustafa El Jalti - Dep. Market Director Industry
* EIT Manufacturing Industrial Innovation Report 2026. Challenges sourced from the report; actions synthesised from its technology solution clusters.