The German Steel Federation WV Stahl Managing Director Dr Martin Theuringer has warned that limiting climate protection contracts to individual pilot projects, as proposed by Germany’s Scientific Advisory Board, would be counterproductive. Dr Theuringer said “Since green lead markets are not yet available, state start-up financing is now needed. It's now about speed and scale.” According to Dr Theuringer, the climate targets cannot be achieved otherwise. He said “The Federal Ministry of Economics & Climate Protection plans to conclude the first climate protection agreements with companies in the steel industry in the coming months and to make a double-digit billion amount available for this purpose. The contracts are to have a term of 15 years.” In a report published last week, Germany’s Federal Ministry for Economic Affairs & Energy’s Scientific Advisory Board recommends a stronger focus on green lead markets in the transformation of industry. As per report “Green lead markets are the better instrument for expanding the production of climate-neutral base materials. They should be given clear priority over climate protection contracts.” In December, the Federal Ministry of Economics presented a draft directive on the funding of climate protection contracts. With climate protection contracts, the government wants to compensate companies for the higher costs of climate-neutral production, such as green steel, over a period of 15 years. However, the ministry's advisors warn that they carry considerable risks.
The German Steel Federation WV Stahl Managing Director Dr Martin Theuringer has warned that limiting climate protection contracts to individual pilot projects, as proposed by Germany’s Scientific Advisory Board, would be counterproductive. Dr Theuringer said “Since green lead markets are not yet available, state start-up financing is now needed. It's now about speed and scale.” According to Dr Theuringer, the climate targets cannot be achieved otherwise. He said “The Federal Ministry of Economics & Climate Protection plans to conclude the first climate protection agreements with companies in the steel industry in the coming months and to make a double-digit billion amount available for this purpose. The contracts are to have a term of 15 years.” In a report published last week, Germany’s Federal Ministry for Economic Affairs & Energy’s Scientific Advisory Board recommends a stronger focus on green lead markets in the transformation of industry. As per report “Green lead markets are the better instrument for expanding the production of climate-neutral base materials. They should be given clear priority over climate protection contracts.” In December, the Federal Ministry of Economics presented a draft directive on the funding of climate protection contracts. With climate protection contracts, the government wants to compensate companies for the higher costs of climate-neutral production, such as green steel, over a period of 15 years. However, the ministry's advisors warn that they carry considerable risks.
