Germany plans to decarbonize one-third of domestic steel capacity by 2030

Wednesday, 18 September 2024 12:20:56 (GMT+3)   |   Istanbul

During Germany’s National Steel Summit held in Duisburg, politicians and industrial associations have spoken in favor of the preservation and green transition of the domestic steel industry and have listed the needs of the sector, according to media reports.

Robert Habeck, German federal minister for economic affairs and climate action, stated that Germany and the EU are spearheading the decarbonization of the steel industry. “In Germany, we will convert around one-third of German crude steel capacity by 2030 and, in doing so, produce around 12 million mt of carbon-free steel,” Mr. Habeck added.

As stated in local German media reports on the summit, steel production is the foundation of many sectors such as automotive and mechanical engineering and their transformation, though it is very energy-intensive and accounts for seven percent of Germany’s total greenhouse gas emissions. New technologies and the use of renewable or green energies such as hydrogen are needed. The German government has been allocating billions of euros for large-scale renewable energy plants, but the domestic steel industry is facing the risk of a weak economy and high energy prices, and cheap imports mainly from Asia. Therefore, IG Metall, one of the largest metalworkers’ unions in Germany, has urged politicians to create a reliable investment environment and to ensure competitive prices for electricity.

Gunnar Groebler, president of the German Steel Federation, stated that Germany needs to establish green markets, to keep energy prices in check and to create effective protection against unfair competition in order to support the industry, which is under pressure.

Additionally, other unions pointed out that a competitive domestic steel industry is essential for industrial value chains, prosperity, employment and a green transformation in Germany and Europe.


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