Save CO2 with billions in aid: Government and steelmakers are setting the pace


Save CO2 with billions in aid
The government and steel mills are accelerating

Steel construction is a key industry in Germany – and has been in crisis for a long time. A far-reaching conversion to climate-friendly production should give the industry a boost. The federal government and Stahlkocher are accelerating, but the billions in aid are not just for the sake of the environment.

The federal government and the steel mills in Germany want to speed up the conversion of heavy industry to more climate-friendly production. “As an industrialized country, we must and want to remain a strong steel location. Hydrogen offers the opportunity to transform this basic industry,” said Federal Economics Minister Peter Altmaier after consultations with the steel association and IG Metall. The federal government is supporting the conversion, among other things, within the framework of the “Important Projects of Common European Interest” (IPCEI) for hydrogen technologies with up to two billion euros. The sum is part of the eight billion euros that have already been launched to fund hydrogen projects.

Plans for all major steel locations in Germany would be taken into account. The minister emphasized that this should save almost eleven million tonnes of CO2 emissions per year by 2030. Altmaier said the government had also never ruled out a quota to purchase green steel. “There are very hopeful signs that a whole range of industrial sectors, not just automobiles, but also others, are interested in the purchase of green steel due to the tightened climate protection targets.” If that were to be regulated in a market economy, it would be a great relief. The process will be closely monitored. If he faltered, this round will come back to it again.

Steel companies are among the largest producers of CO2

The steel industry with corporations such as Thyssenkrupp, Salzgitter and ArcelorMittal is one of the largest producers of climate-damaging carbon dioxide. According to their own statements, the companies cannot handle the multi-billion dollar renovation alone. The President of the Steel Federation, Hans Jürgen Kerkhoff, called for further measures. “Additional instruments such as climate protection agreements and green lead markets are needed so that sustainable business models for green steel can develop in Germany.” In addition, in the transition to climate neutrality, the competitiveness of conventionally produced steel must be maintained. For this, sufficient free allocation of certificates in EU emissions trading is necessary.

“The climate-friendly restructuring of the steel industry will not succeed without substantial government support,” said IG Metall board member Jürgen Kerner. The industry needs binding funding commitments – on a scale that meets the historic challenge. The conversion will cost around 30 billion euros. Around ten billion euros would be needed by 2030.

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