As world leaders gather in Belém for COP30, one truth stands out: the debate on if we must decarbonize is getting quieter – the question is how to do it in a way that drives competitiveness.
The industrial transformation is already happening. From circular business models to climate innovations, we have the tools to accelerate progress and reach ambitious sustainability goals. However, there are still two real challenges to face – one financial, and one political – and the climate-clock is ticking.
That is why Outokumpu joins COP30, to advocate the negotiators to implement ambitious and predictable policies that incentivize industrial decarbonization at scale. Policymakers should prioritize regulations and financial mechanisms that accelerate circular business models, reward the use of low-carbon materials and align finance criteria with climate innovation. By fostering strategic partnerships and supporting technological innovations, the conditions for a resilient, low-carbon, and circular industrial future are becoming a reality.
Dive deeper into how we are advocating for climate policy at COP30 in our latest position paper, or continue article and let and our VP Sustainability Heidi Peltonen take you through her perspective on regulatory environment, financing the transition and why collaboration matters.
Incentivizing through regulation
From the policy side a principle applies; governments must create conditions where sustainable investments make financial sense — connecting regulation with incentives that reward emission reductions, circularity, and innovation.
To do this, policymakers must level the playing field for decarbonized business models through tax reforms, procurement policies, and harmonized regulations that make low-carbon solutions commercially viable. In addition, they should mobilize climate finance by aligning public funding, green bonds, and investment incentives with low-carbon infrastructure and circular innovation.
A good example of a climate policy that improves the competitiveness of the companies leading on climate action is EU’s Carbon Border Adjustment Mechanism (CBAM). As I explain in my recent reflections, we at Outokumpu think that CBAM has the right ambition to limit carbon leakage — and with effective and timely implementation, it can have a significant impact.
CBAM aims to ensure that imported steel and other emissions-intensive goods face the same carbon costs as those produced within the EU. CBAM is essential to reinforce the EU’s climate credibility, and level the playing field. However, its success depends on its timely and effective design and implementation. Any delay would undermine its integrity and penalize first movers who are already investing in clean technologies.
Meanwhile, establishing lead markets through clear solutions can further drive commercially viable climate leadership for the steel sector. Public procurement has been estimated to account for 11% of EU steel consumption. Mandating binding sustainability criteria in procurement, establishing clear labelling and standards, and defining specific criteria for carbon and stainless steel are a must to create predictable demand.
By combining regulatory ambition with financial foresight, we can create predictable market conditions that accelerate industrial decarbonization, stimulate innovation, and drive the transition to a truly low-carbon economy.
When business ambition meets coherent climate policy and company commitment, sustainability becomes not a burden, but a growth strategy – one that secures competitiveness, attracts investment and builds a future that lasts.
Keeping the Course
In times of geopolitical and economic uncertainty, keeping the course on climate ambition is more critical than ever. We need to keep up with our ambitious targets – this is not the moment to give up on them. Predictability is the foundation of progress – it’s what enables industries to make long-term investments, innovate boldly, and deliver real transformation.
When climate policies are clear, consistent, and coordinated, the private sector gains the confidence to invest in new technologies, scale circular solutions, and decarbonize their value chains. Stability gives innovators room to act and turns sustainability from a moral aspiration into a strategic advantage.
Global leaders have the opportunity and obligation to accelerate low-carbon innovation – and they should use every tool in their toolbox to make it happen.
Financing the transition
We often discuss technologies and targets in sustainability conversations, but far too little about how to finance the transition. The transformation we need will not be achieved through ambition alone – it requires smart financing, and a shared commitment through the value chain; from raw material supplier, to distributor, manufacturer and eventually even consumer demand driven by regulatory environment, to make decarbonization economically viable.
For businesses, this means integrating sustainability directly into investment logic: every decision about infrastructure, technology, or product development should also be a decision about the climate. Climate change as a risk needs to be at the foundation of the company strategy. True leadership lies in recognizing that sustainable choices are not necessarily more expensive — they are smarter investments that build resilience and value over time.
Collaboration across policy and private sector
The transformation ahead is too vast for any single company, industry, or government to achieve alone. Real progress depends on collaboration across value chains, sectors and borders. Only by combining technological innovation and value chain partnerships, together with ambitious policy, can we achieve decarbonization at scale.
Europe’s steel industry stands at a historic crossroads. In a context characterized by uncertainty, global overcapacity of steel, and the acceleration of the climate crisis, Europe must act – not only to meet its climate goals, but to defend its strategic autonomy and industrial competitiveness. As the global leader in sustainable stainless steel, Outokumpu joins COP30 with a clear mission: to accelerate industrial decarbonization through innovation, strategic partnerships and regulatory ambition. We advocate to seize this opportunity – because clean steel is not just a climate imperative. It is the backbone of sovereignty, prosperity and global relevance.
We call on COP30 negotiators to implement ambitious and predictable climate policies that enable industrial decarbonization at scale. This achievement will be realized through the transition to renewable energy and fuels, electrification, and solutions for supply chain emissions.
By working together, from finance to policymakers and private sector with science, we can turn the global climate challenge into a powerful catalyst for economic growth. The path forward is clear: stay the course, focus on aligned execution, and make sustainability the most profitable decision we can take.