In a public discussion with German politicians, thyssenkrupp explained the challenges the steel industry is facing to become carbon-neutral, and worded the framework required to facilitate a transition.
Germany’s largest steel producer plans to produce 3 million tonnes/year of green steel as early as 2030 and thus cut CO2 emissions by 30%. This will require investments of around €2 billion ($2.4 billion) in a regulatory environment that is as yet unclear and a market for green steel products that does not yet exist, the company notes.
“From a purely business perspective, we should not start the transformation under the current conditions,” Kallanish hears from thyssenkrupp Steel chief executive Bernhard Osburg. “But combating climate change is more than that: it is a task for society as a whole.”
Among other things, the group proposes the creation of a transformation fund, which should include all industrial sectors facing fundamental transformation in the interest of reducing emissions.
It also admonishes the strengthening of “carbon leakage” measures and reduction in free allocation of EU carbon emissions certificates. Furthermore, it demands a level playing field of competitiveness for green steel by establishing a corresponding market – comparable to the promotion of electric cars. This would involve binding quotas and standards to support the use of green steel.
“Investment cycles are long. 2030 is basically tomorrow. So, we need to start now,” Osburg said at the discussion.
Christian Koehl Germany
