An action plan designed to strengthen the competitiveness of Europe's steel and metals industry kicked off on Wednesday, the European Commission has announced.

The plan will ensure an affordable and secure energy supply for the sector, promote faster grid access for energy-intensive industries, prevent carbon leakage, expand European industrial capacities, promote circularity and protect quality industrial jobs, the Commission said on its website.

"The steel industry has always been a core engine for European prosperity. Next-generation, clean steel should therefore continue to be manufactured in Europe," said Commission President Ursula von der Leyen.

"We have to help our steelmakers to make sure they remain competitive, we must reduce energy costs and help them introduce innovative, low-carbon technologies to the market," she added.

The Commission will mobilize over 100 billion euros (108.9 billion U.S. dollars) of funding in the coming years to promote the decarbonization of industry.

It is planning a pilot auction in 2025 to the value of 1 billion euros, which will focus on decarbonizing and electrifying key industrial processes.

The European steel industry has approximately 500 production sites across 22 European Union (EU) member states, and employs some 2.6 million people. It contributes around 80 billion euros to the EU's GDP, according to the Commission. (1 euro = 1.09 U.S. dollar)