The world's largest steel maker ArcelorMittal SA on Tuesday lost a legal challenge that sought to exempt it from the European Union's greenhouse gas cap-and-trade system.

The EU's general court said the company could not annul the EU law that issues pollution permits to major carbon dioxide emitters and loads them with costs if they pollute more than allowed.

The court said ArcelorMittal's claims that the EU program damaged its right to do business and to own property were "inadmissible." It also says the company has no grounds to seek damages. The company can appeal the ruling within two months.

ArcelorMittal spokesman Jean Lasar said the steel maker is still concerned that the European emissions trading system "might put an excessive strain on the EU steel industry's competitiveness and threaten steel makingjobs."