Berlin – An alliance of associations and labor unions is calling on the federal government to swiftly establish lead markets for green steel in Germany. The alliance sees great potential particularly in rail infrastructure construction and expects this to send a signal to other industrial and construction sectors as well. The federal government is now called upon to launch concrete pilot projects and, for example, to increase incentives for the use of green steel from Europe through adapted public procurement laws.
In its coalition agreement, the CDU/CSU-SPD federal government had already announced plans to simplify and expedite public procurement law at the national and European levels “for low-emission products in the basic materials industry, with a pilot project for Deutsche Bahn.” Dirk Flege, Executive Director of the Pro-Rail Alliance, commented: “Significant amounts of CO₂ could be saved during the construction or renovation of rail lines if green steel from Germany or another EU country were used. So far, there have been only very few pilot projects. Up to 100 metric tons of CO₂ could be saved per kilometer of track; for a route like Hamburg-Berlin, that would amount to about 33,000 metric tons less CO₂ compared to conventional steel.”
The announced pilot projects in rail infrastructure must now be implemented quickly, urged Prof. Dr. Kai Niebert, president of the German Nature Conservation Association: “Countries like Belgium and France are showing us that the use of green steel in rail construction is already possible today. If we in Germany also lead by example in the rail sector, this will send a strong signal to the entire business community and demonstrate that climate neutrality and sound economic policy go hand in hand.”
In addition to achieving climate protection goals, the alliance also sees benefits for the competitiveness of the German economy and for securing jobs in the steel industry. Jürgen Kerner, Second Chairman of IG Metall, commented: “If billions from the special fund are flowing into public infrastructure such as rail lines, this must also benefit domestic steel manufacturers. We need binding local-content requirements here.”
Kerstin Maria Rippel, CEO of the German Steel Association, emphasized: “The federal government must now swiftly create lead markets for low-emission domestic steel so that our industry’s transition to climate neutrality progresses reliably—and Germany’s position as a steel-producing nation is secured. The conditions are in place: increasingly low-emission steel from Germany and the EU, established sustainability standards, and proven best-practice examples. It is now crucial that public procurement procedures provide clarity and thereby strengthen the demand for climate-friendly materials.”
The federal government must offset any potential additional construction costs with supplementary funding. Every euro invested yields a threefold return in the form of climate protection, a competitive economy, and secure jobs.
Position Paper
Joint Press Release
