Several German states to call for additional free ETS allowances for steel industry

Several German states are demanding that the federal government and the EU should protect the steel industry from stricter environmental regulations and rising electricity costs, reports Süddeutsche Zeitung. In a draft of the joint final statement for today’s National Steel Summit (22 October), seen by the newspaper, the states call for more free European Union Emissions Trading System (ETS) allowances for the steel sector, and compensation for rising power prices due to an increase in ETS prices. In addition, the states warn the German government not to introduce additional requirements for the steel industry when it adopts a national climate protection law next year. The final paper states: "The climate doesn't care at all where CO₂ is produced.” This is why comparatively climate-friendly plants in Germany need to be "strengthened", the draft says.
In an interview with public broadcaster ZDF, economy minister Peter Altmaier said the government aimed to ensure that Germany continued to produce the “cleanest steel”. “We have to make sure it’s not just others – who do not care about climate and environment protection – do the business,” said Altmaier. “It’s not about climate protection or steel, it’s about climate protection and steel.”

Read the article in German here, and watch the interview in German here.

For background, read the CLEW article Rising CO2-price could trigger German coal phase-out in 5 years.