According to a study by economists from the University of Mannheim, the production of environmentally friendly steel in Germany can be competitive internationally only if politicians limit prices for industrial electricity and hydrogen, support investments, introduce "buy European" procurement rules and protect domestic producers from unfair competition.

The study, funded by the Hans Beckler Foundation, examined the conditions under which the production of environmentally friendly steel can become economically viable in Germany and Europe while maintaining the competitiveness of the region's industry.

The authors, Tom Krebs and Patrick Kaczmarczyk, concluded that the European steel industry will need extensive government support and market protection measures to ensure the investments needed to transition to low-carbon steel production.

The researchers argue that significant domestic steel production is crucial for the sustainability of Germany's industry, noting that a global "steel shock" could cost the German economy up to 50 billion euros ($57.3 billion) annually in a loss of value estimated in a preliminary study in 2025.

According to the study, existing measures, including anti-dumping duties on steel imports, were fragmented and insufficient, while the industry continued to reduce production, reduce employment and postpone key investments.

However, new protective measures came into force on July 1, which, together with the Carbon Boundary Regulation Mechanism (CBAM), effective January 1, 2026, are expected to significantly reduce steel imports into the bloc.

The Italian source said that he believes that, due to CBAM, even the current, modest quotas will not be fully met, which, in his opinion, will lead to a 60% drop in hot-rolled roll imports and an 80% drop in cold-rolled roll imports.

However, the study recommends the following measures::

Industrial electricity price: A guaranteed electricity price of 60 euros (US$69) per megawatt hour (MWh), including electricity charges and all fees, until 2035 for all energy-intensive companies. For companies subject to collective agreements, the researchers propose an additional reduction of 10 euros/MWh. The price of industrial hydrogen: A guaranteed purchase price of 140 euros for environmentally friendly hydrogen/MWh until 2035 for all energy-intensive companies. Additional reduction of hydrogen prices by 20 euros/MWh for companies with fixed tariffs. Targeted investment support: Direct grants or low-interest loans

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