A broad alliance of German industry associations, steel stakeholders, environmental groups and trade unions is calling on the federal government to accelerate the creation of lead markets for green steel. The coalition argued that railway construction offers an immediate and high-impact opportunity to deploy low-emission steel, reduce carbon emissions, and demonstrate the feasibility of large-scale green steel adoption across industrial and construction sectors.
According to the coalition, using green steel in Germany’s rail network could substantially advance national decarbonization goals. The current government’s coalition agreement has already committed to revising procurement law to prioritize low-emission basic materials, with Deutsche Bahn expected to act as a frontrunner.
Dirk Flege, managing director of Germany-based transport association Pro Rail Alliance, stated that deploying German or EU-made green steel in railway construction or modernization could avoid up to 100 mt of carbon dioxide per kilometer of track. This equates to around 33,000 mt of avoided emissions on a route such as Hamburg-Berlin. Despite this potential, only a small number of isolated pilot initiatives have been rolled out so far.
Examples abroad show transition feasible
Environmental groups, including the German Nature Conservation Ring, emphasized that Belgium and France already demonstrate practical, real-world use of green steel in railway applications. They argued that Germany’s adoption of low-emission steel in major public infrastructure projects would send a strong signal across Europe, reinforcing the view that climate neutrality and industrial competitiveness can progress together.
Unions and industry call for local content and stronger policy signals
Metalworkers union IG Metall’s second chairman Jürgen Kerner stressed that public infrastructure funds should directly support domestic steelmakers through binding local content requirements.
German Steel Federation (WV Stahl) CEO Kerstin Maria Rippel added that rapidly establishing lead markets is essential for the success of the steel sector’s climate transition. She underscored that Germany and the EU already have low-emission steel production capacity, established sustainability standards and proven best practices, providing a strong basis for immediate implementation.
While green steel may initially carry a price premium, the coalition argued that any additional construction costs should be supported through federal funding. According to the alliance, each euro invested in low-emission steel would generate a threefold return through climate benefits, enhanced industrial competitiveness and safeguarding high-quality employment.
