German steel producers have expressed support for the new government climate protection program Klimaschutzprogramm 2026 (KSP), but emphasized the need for proper implementation of the proposed measures. This position was voiced by the German Steel Industry Association (WV Stahl).
This is reported by Finway
The Importance of Creating a Local Market for “Green” Steel
WV Stahl’s Managing Director Kerstin Maria Rippel noted that a particularly positive aspect of the KSP 2026 program is the emphasis on establishing leading markets for climate-friendly materials, including steel, in public procurement and the automotive sector. According to her, without stable domestic demand, the deployment of low-carbon steel production in Germany will be significantly complicated. However, the program leaves the issue of stimulating demand in rail transport unclear.
“What is crucial now is how the announced leading markets will be framed in general law regulations, such as the law on accelerating public procurement procedures. If they are not linked to the ‘Made in Europe’ criterion, we will be financing decarbonization in other regions of the world, while Germany and the EU will lose industrial added value,” she emphasized.
Details of the KSP 2026 Program and Germany’s Climate Goals
Kerstin Maria Rippel stressed that the metallurgical industry needs leading markets specifically for low-carbon steel produced in Europe. She noted that climate protection and competitiveness are interdependent, and only through a comprehensive approach can the country successfully transition to climate neutrality while maintaining its status as a powerful industrial center.
On March 25, the German government approved a new climate protection program aimed at achieving national climate goals after lengthy discussions. Over the next four years (2027–2030), an additional €7.6 billion will be allocated from the Climate and Transformation Fund for the implementation of the program, along with another €400 million from a special fund. In particular, €2.9 billion will be used to finance industrial projects for decarbonizing technological heat, electrifying production processes, and developing a circular economy. The program also aims to create leading markets for climate-friendly materials, primarily steel and cement.
Germany has committed to reducing greenhouse gas emissions by 65% by 2030 compared to 1990 levels, and by 88% by 2040.