Europe’s steel industry confronts mounting challenges in its 2026 green transition, with major producers delaying or canceling hydrogen-based projects due to weak demand, high energy costs, and policy uncertainty. Despite billions in government subsidies, firms like ArcelorMittal have scrapped flagship low-carbon projects in Germany, while Salzgitter pushed back its €1 billion SALCOS green steel initiative by three years. EU steel demand remains depressed due to sluggish construction and auto sectors, compounded by low-cost imports and ETS carbon costs. The European Steel Association warns that 2026 is make-or-break—mills need 80–85% capacity utilization (currently 65%) to fund decarbonization, urging swift implementation of new trade measures and CBAM refinements.