To what extent are EU steel companies susceptible to competitive loss due to climate policy?

► We evaluate carbon leakage and vulnerability claims to climate policy by EU Steel companies. ► We find these claims are exaggerated and form key part of companies' climate political strategy. ► The success of this strategy implicates information asymmetry and the broader political economy of regulation within the EU. ► It has proved successful in helping the sector achieve free emission allocations in the EUETS.