Germany supports the inclusion of environmentally friendly steel in the EU automotive package
The German government has expressed unanimous support for the EU's automotive package, endorsing the inclusion of low-carbon materials such as environmentally friendly steel as part of compliance mechanisms. This position was confirmed after the meeting of the coalition committee held on April 10.
Under the framework that was proposed at the end of 2025, automakers will have to achieve a 90 percent reduction in exhaust emissions starting in 2035. The remaining 10 percent of emissions can be offset through the use of low-carbon steel produced in the EU, as well as e-fuels and biofuels, which provides additional flexibility in meeting climate targets.
Industry sees increased demand for low-emission steel
The German Federation of Steel Producers (WV Stahl) welcomed the proposal, in particular the credit facility for low-emission steel production.
Industry representatives noted that this measure could simultaneously support the automotive sector's decarbonization efforts and stimulate demand for environmentally friendly steel, helping to create a leading market in the EU.
Energy prices continue to put pressure on the industry
Despite the political support, concerns remain about high energy prices, which have worsened as a result of the Middle East crisis. The German government has introduced temporary relief measures, including a tax cut on mineral oils for diesel and gasoline by about 17 cents per liter for two months.
However, industry stakeholders expressed concern about the exclusion of industry from the immediate energy program and warned that energy-intensive industries such as the steel industry still face uncompetitive electricity costs.
Competitiveness is at stake
The steel sector has called for the implementation of previously announced support measures, in particular mechanisms for compensation of electricity prices. In addition, representatives of the industry proposed to introduce a guaranteed electricity price of 50 euros./MWh for industrial consumers, covering all related costs.
Stakeholders emphasized that such measures are crucial to ensure long-term competitiveness and support the transition to low-emission steel production. Without proper political support, rising energy prices could undermine both industrial production and decarbonization efforts in Germany's steel sector.
Author: Editorial