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PRESS RELEASE NO. 42/2021 New Federal Government Must Set the Course for a Climate-Neutral Steel Industry

Joint Press Release from the German Steel Association and IG Metall on the Occasion of the High-Level Steel Forum

IG Metall, Mainforum, Gebäude, Fahnen

8 October 2021 8 October 2021


Today, at the invitation of Brandenburg’s Minister of Economic Affairs Jörg Steinbach, Federal Minister of Economics Peter Altmaier, along with representatives from the steel-producing federal states, the steel industry, and IG Metall, discussed the policy measures and instruments necessary for a transition to a climate-neutral steel industry. The implementation of the Steel Action Plan by a new federal government plays a particularly important role in this regard.

Hans Jürgen Kerkhoff, President of the German Steel Association:
“The initiative by the steel-producing federal states to hold this High-Level Forum comes at the right time, because the transition to a climate-neutral steel industry requires a policy framework that effectively supports the intensive efforts of steel companies toward climate neutrality. All stakeholders share the understanding that concrete measures must now be swiftly put in place so that the steel industry in Germany can make a decisive contribution to achieving the 2030 climate target. This also includes protecting the industry from production relocations abroad.

Against the backdrop of ambitious climate targets, a new federal government must use its first 100 days to set the political course in such a way that sustainable and competitive steel production in Germany remains possible. Anchoring the implementation of the Steel Action Plan in the coalition agreement is just as necessary a step as continuing the constructive dialogue between policymakers, the steel industry, and labor unions to support the transformation.

Despite all the commitment at the national level, however, we must not forget that it is also the EU’s responsibility to provide a framework that promotes this transformation. Therefore, the federal states and a new federal government are called upon to speak out strongly in Brussels so that the Green Deal incorporates an industrial policy perspective.”


Jürgen Kerner, Executive Board Member of IG Metall:
“IG Metall expressly supports the Paris climate goals and the associated path toward a climate-neutral economy. The steel industry must do its part here. The plans are ready at the companies. Now policymakers must create the necessary framework conditions for this. We need swift and long-term, sustainable commitments to funding from the EU, the federal government, and the states. This includes funding for the investments needed to produce green steel, as well as for the increased ongoing production costs.

However, the steel industry can only transform itself if there is a guarantee of sufficient green electricity and green hydrogen at affordable prices. Consequently, significant efforts must be made to expand renewable energy and provide the necessary energy infrastructure. In addition, the capacity for producing green hydrogen must be expanded to at least 10 gigawatts of installed capacity by 2030.

The 85,000 employees in the steel industry and throughout the entire value chain in Germany rightly expect an active, proactive industrial policy that offers them prospects for good and secure jobs. If the new federal government does not act decisively here, we risk structural disruptions, job losses, and a loss of public support for this major societal project. The Steel Action Plan must therefore be implemented decisively now. We expect the new federal government to include this in the coalition agreement and to incorporate initial measures into its 100-day program.

 

Further information and press photos of Jürgen Kerner

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