German Steel Federation comments on EU climate target 2030

As part of the trialogue, the EU Commission, Parliament and Council have agreed to raise the climate target for 2030 to minus 55 percent compared to 1990. The EU wants to be climate-neutral by 2050. With a share of around 30 percent of industrial emissions, the steel industry can make a decisive contribution to achieving these targets. To do so, steel production must be converted to low-CO2 processes, but these involve considerable additional costs. "Particularly against the background of the increase in the EU climate target for 2030, a political framework must now be swiftly put in place to support and safeguard investment in climate-friendly steel production. Tightening climate targets alone is not a responsible climate policy. Only if industrial production remains internationally competitive can it make its contribution to climate protection and prosperity," says Hans Jürgen Kerkhoff, President of the German Steel Federation.

The central task for policymakers remains to prevent industrial production from taking place in other regions of the world with significantly lower climate protection requirements in the future, says the Steel Federation. Kerkhoff therefore warns against a further tightening of EU emissions trading as a result of the new EU climate target: "Under the existing regulations in EU emissions trading, steel companies already have to purchase around 20 percent of the certificates to offset their emissions. This will involve costs running into billions by the end of the trading period in 2030. As a result, the international competitiveness of the steel industry will be burdened and companies will be deprived of the financial resources they need for climate protection investments. The total amount of free allowances already set must not be reduced again, otherwise the additional burdens threaten to slow down the transformation in the steel industry."

Source: WV Stahl, Photo: Fotoloa