Steel and renewables industries call for summit with the German government

In order to secure the path to a climate-neutral future, the German Renewable Energy Federation (BEE) and the German Steel Federation are jointly calling on the German government to convene a transformation summit. This is urgently needed in order to analyse, organise and reshape the situation following the Karlsruhe ruling. Furthermore, the federal-state pact for accelerated planning and approval must be implemented promptly.

The court decision ruled that the transfer of 60 billion euros to the Climate and Transformation Fund (KTF) was unconstitutional and also has consequences for other financing instruments, for the 2023/2024 federal budget and, above all, for the future framework conditions for transformation investments. In the view of both associations, the financing of the green transformation of industry as a whole is massively jeopardised as a result. Solutions must not only be based on budgetary considerations, but must above all be considered in terms of economic and location policy.

Companies need planning and investment security in Germany as quickly as possible, otherwise there is a risk of a backlog of investments in the transformation.

Bernhard Osburg, President of the German Steel Federation, commented:

"If politicians do not find a clear answer now as to how the transformation of the industry can be reliably financed, there is a threat of a standstill in investments and in key transformation projects with far-reaching consequences for climate protection targets, the competitiveness of the business location and for employment.

We need clarity on the following questions in particular:

•     What is the future of European IPCEI funding? Only six out of 45 projects have been approved so far. In the case of 25 projects, the early start of measures has been approved and investments have begun in the confidence that the funding will then also be approved and paid out via the national budgets.   
• What does this mean for electricity prices? The goal of competitive electricity prices must be maintained?
• What will happen with the climate protection agreements?
• What will happen with the hydrogen ramp-up and the necessary infrastructure?
• What about investment aid for the transformation, which is a lever for private investment?

Without the transformation of the basic materials industry, the climate targets set for 2030 cannot be achieved - without transformation, prosperity and resilience cannot be guaranteed. Our companies are embarking on the transformation with vigour and high risk. We now need planning security and clear prospects for the future."

Dr Simone Peter, President of the German Renewable Energy Federation, said:

"The renewables industry in Germany needs key basic materials such as steel and industry needs an affordable and reliable energy supply. This is only possible with 100 per cent renewable energies for electricity, heat and molecules. They protect against one-sided import dependencies and lower prices for companies and consumers.

Renewables also take into account the earlier judgement of the Federal Constitutional Court that the Federal Government is obliged to achieve the climate neutrality target. Renewable energies are the key to securing Germany as a production location, which is why further progress must be made in reducing bureaucracy in planning and authorisation.

Investors for renewables are available across all sectors, including storage and green hydrogen. We now need clarity on the pace of expansion, the guidelines for a new electricity market, but also on strengthening European value creation. Resilience and climate neutrality are the guard rails for a sustainable industrial strategy."

Source: WV Stahl, Photo: Fotolia