The German Steel Association (WV Stahl) warned that the joint proposal by Germany and France for the automotive sector could weaken the incentive mechanism planned by the European Commission to promote the use of low-emission steel.
In a statement on October 16, WV Stahl expressed support for the European Commission’s proposal to establish a separate credit mechanism for low-emission steel under its automotive package. However, the association raised concerns over Germany and France’s request to integrate this mechanism into an expanded “super credit” system for electric vehicles starting in 2027.
The German-French proposal envisages the inclusion of low-emission steel and aluminum produced in Europe under the same mechanism. According to WV Stahl, this approach risks reducing the effectiveness of the specific incentive for low-emission steel use.
In the statement, Rippel welcomed efforts to encourage the earlier use of low-emission materials and prioritize European production. However, Rippel emphasized that the mechanism’s effectiveness would be just as important as its implementation date. Rippel stated that the consequences of combining steel and aluminum under a single system remain unclear and could weaken the objective of generating demand for low-emission steel.
The association called for maintaining the European Commission’s proposed separate steel credit mechanism and allowing its earlier implementation. It stated that this approach could generate additional demand for low-emission steel across a wide range of vehicles produced in Europe before 2035.
WV Stahl also emphasized that if an alternative mechanism is adopted, it must be ensured that it generates the same level of demand as the steel credit proposed by the Commission.
Stating that Europe needs effective demand-side instruments to support industrial investment and regional value creation, the association called on the German government to continue supporting the separate steel credit mechanism.
