PRESS RELEASE NO. 22/2021 IG Metall Calls for a Transformation Fund for the Green Restructuring of the Steel Industry

Frankfurt am Main – Following today’s meeting between representatives of the steel industry and IG Metall with Federal Minister of Economics Peter Altmaier on the promotion of green steel, IG Metall is stepping up the pace and calling for concrete funding commitments from policymakers: “No German steel company will be able to finance the transformation on its own. That is why companies now need a substantial and binding commitment and the ability to plan ahead. Otherwise, jobs are at risk of being lost irretrievably in the medium term,” warned Jürgen Kerner, Chief Treasurer of IG Metall and a member of the Executive Board responsible, among other things, for the steel sector. “If policymakers outdo one another in tightening climate targets but keep postponing concrete action and implementation measures, then we will lose workers in the steel sector and valuable time in reducing CO2 emissions!”

IG Metall is therefore calling for the immediate establishment of a transformation fund for the steel industry, endowed with 10 billion euros by 2030. Only in this way can the stated goal of transitioning 10 million metric tons by 2030 be achieved. This will result in a reduction of 17 million metric tons of CO2. This fund can be used to support both investments and increased operating costs for green steel. Companies must also contribute their share of the costs.

IG Metall emphasizes that this funding is a worthwhile investment in the climate and jobs: “The steel industry offers the greatest leverage in the entire industrial sector for achieving climate protection goals. Every euro spent on climate protection has the greatest impact in the steel industry. However, concrete action must be taken now,” said Jürgen Kerner.

On July 15, 2020, the German federal government adopted the Steel Action Plan. Since then, the steel industry, the German Steel Association, IG Metall, and the Federal Ministry for Economic Affairs have been engaged in a dialogue to facilitate the sustainable decarbonization of the steel industry. There is broad agreement on the need for public funding. Work on the details of a joint statement will continue over the next few days.

Further information and press photos of Jürgen Kerner