Germany plans to make a third of its steel industry green by 2030

Germany plans to convert a third of its steelmaking capacity to green technologies by 2030, ensuring an annual output of 12 million tons of environmentally friendly steel. This was announced by German Economy Minister Robert Habeck during the National Steel Industry Summit in Duisburg.

German politicians and trade unionists are unanimous in their support for the preservation and environmental transformation of the local steel industry.

The steel industry is key to sectors such as the automotive and mechanical engineering industries. However, it is one of the largest sources of greenhouse gas emissions, accounting for about 7% of total emissions in Germany. The solution is seen in the introduction of new technologies, such as renewable energy and hydrogen.

The German government is allocating billions of euros to support this transformation, but the industry also faces challenges from high energy costs and competition from Asian producers.

Trade unions and industry representatives are calling on the government to create a favorable environment for investment and provide access to cheaper energy. This is seen as critical to preserving tens of thousands of jobs and maintaining Germany as a leading industrial center in Europe.

Gunnar Grebler, Chairman of the Steel Federation, noted that the industry is under considerable pressure and needs immediate changes. He highlighted three key areas that should be addressed: the creation of green markets, control over energy prices, and protection against unfair competition.

“To prevent the boiler from bursting, we need to tighten these three screws now,” he emphasized.

The eleven German states that have formed the Steel Alliance have called for an immediate government program to support the market for lower CO2 steel, including through public procurement to stimulate demand for green steel.

Jürgen Kerner, Deputy Chairman of the IG Metall trade union, emphasized the importance of the steel industry for the preservation of tens of thousands of well-paid jobs, as well as its importance for national industrial value chains. He also called for clear commitments to invest in domestic enterprises to keep the steel industry as a key element of the German economy on the path to climate neutrality.

As GMK Center reported earlier, Germany needs additional private and public investment of €1.4 trillion by 2030 to remain internationally competitive in the future. About 20% of industrial value creation in Germany is at risk.