German steel federation Wirtschaftsvereinigung Stahl (WV Stahl) has stated that, according to the analyses about the effects of the European Commission’s (EC) proposal for the fourth review of the European Union Emissions Trading System (EU ETS), production and employment will fall by 60 percent in the German steel industry by the year 2030, there will be job losses of around 380,000 employees, and the overall economic value will fall by €30 billion by 2030. In addition, a massive impairment of the competitiveness of the steel industry will reduce investments significantly, according to forecasts.
In July 2015, the EC presented a legislative proposal to revise the EU emissions trading system for the period after 2020, which aims to reduce greenhouse gas emissions by at least 40 percent domestically by 2030. To achieve the EU target of at least 40 percent, the sectors covered by the ETS have to reduce their emissions by 43 percent compared to 2005.
WV Stahl reiterated its concern over the potential extra costs the new emission targets will bring for the German steel industry, stating that in its view the German steel industry will not be able to withstand competition with market players in countries without an emissions trading system.