Through the Power4Steel transformation project, the steel companies Dillinger and Saarstahl are investing EUR 4.6 billion in the climate-neutral transformation of their production sites in Dillingen and Völklingen. This initiative is one of the largest industrial decarbonization projects in Europe. These investments are based on having a reliable political framework and an effective European Emissions Trading System (ETS) as the central instrument of climate policy.
While the proposals presented today contain some significant changes that the steel industry in Saarland views critically, they also demonstrate that the European Commission remains committed to the fundamental principles of the European Emissions Trading System.
The interventions described lead to a lowering of the CO2 price signal, posing massive challenges for first-mover companies. There is a lack of clear concepts and mechanisms for protecting these companies against retroactive changes.
In the ongoing European legislative process, it will therefore be crucial to shape the regulatory framework so that ambitious climate protection, confidence in investments, and international competitiveness are all equally ensured. The key issue now is to address existing weaknesses and further strengthen the stability for investment and planning needed for industrial transformation. The goal remains an ETS that effectively supports and accelerates the industrial transformation in Europe.
An effective industrial policy framework is also required. This would specifically include green lead markets for climate-friendly raw materials, a workable export solution relating to the Carbon Border Adjustment Mechanism (CBAM), and targeted reinvestment of ETS revenues into the industrial transformation.
Stefan Rauber, Chair of the Board of Directors of Saarstahl and Dillinger, explains: “The people who guide the regulatory framework in a particular direction over the course of years – as do the German government and the European Union – have a responsibility. Without a reliable signal regarding CO₂ prices, investments in climate-friendly technologies lose their economic basis – and along with that goes the credibility of European climate and industrial policy.”
Dillinger and Saarstahl will now examine and assess the European Commission’s proposal in detail.
(Source: Stahl Holding Saar)
