Germany has called on the European Union to significantly increase the use of low-emission steel in automotive manufacturing, as part of a broader effort to align industrial policy with Europe’s climate-neutral objectives. In a joint letter to European Commission President Ursula von der Leyen, 11 German state premiers have urged the Commission to establish regulatory coherence between the steel and automotive sectors.
Clean steel as a foundation for Europe’s industrial and climate future
Kerstin Maria Rippel, CEO of the German Steel Federation (WV Stahl), welcomed the move, underscoring that low-emission steel production in Germany and across the EU is essential for protecting the continent’s industrial base while driving the transition to climate neutrality.
She stressed that market-based incentives along the entire value chain, starting with basic materials, are required to ensure competitiveness and support long-term investment in clean technologies.
Crediting low-emission steel in fleet targets seen as key policy tool
Rippel highlighted one policy mechanism with significant potential: allowing automotive manufacturers to credit verified carbon reductions achieved through certified low-emission steel toward their EU fleet emissions targets. Such an approach would reinforce industrial value creation, enhance competitiveness, and support climate protection simultaneously, she added.
The steel industry, Rippel emphasized, is ready to contribute to this transition but requires a regulatory framework that supports large-scale investment and tightly integrates the strategies of the steel and automotive sectors.
