The German government has expressed united support for the EU's Automotive Package, endorsing the inclusion of low-carbon materials such as green steel as part of compliance mechanisms. This position was confirmed after the meeting of the coalition committee held on April 10.
According to the framework program, which was proposed at the end of 2025, automakers will have to achieve a 90 percent reduction in exhaust emissions from 2035. The remaining 10 percent of emissions can be offset through the use of low-carbon steel produced in the EU, as well as e-fuels and biofuels, which will provide additional flexibility in achieving climate targets.
Industry sees growing demand for low-emission steel
The German Steel Producers Federation (WV Stahl) welcomed this proposal, in particular, the low-emission steel credit facility.
Industry representatives noted that this measure could simultaneously support the automotive sector's decarbonization efforts and stimulate demand for green steel, helping to create a market for lead in the EU.
Energy costs continue to put pressure on the industryDespite the political support, concerns remain about high energy prices, which are exacerbated by the Middle East crisis. The German government has introduced temporary preferential measures, including reducing the mineral oil tax on diesel and gasoline by about 17 cents per liter for two months.
However, industry stakeholders have expressed concern about
