Germany’s Steel Federation, WV Stahl, has warned that a joint French-German proposal for the European automotive industry could weaken incentives to use low-emission steel in vehicle production.
France and Germany propose replacing the European Commission’s planned standalone credit scheme for low-emission steel with a broader electric-vehicle super-credit mechanism from 2027. Under the proposal, low-emission steel and aluminium made in Europe would be counted together. The plan also includes support for investment, research and development, European manufacturing and more resilient supply chains.
WV Stahl says combining the two materials could dilute targeted support for steel with lower emissions and hinder efforts to establish a market for green steel in Europe.
WV Stahl chief executive Kerstin Maria Rippel welcomed the prospect of introducing incentives for low-emission materials sooner and the focus on European production. But she said the mechanism’s effectiveness mattered more than when it came into force.
Rippel called for keeping the European Commission’s proposed standalone steel credit scheme while bringing its launch forward, to boost demand for lower-emission steel in vehicle production before 2035. Any alternative, she said, should offer equivalent incentives.
Rippel also urged the German government to back a dedicated steel credit mechanism and ensure it is introduced no later than 2030. Effective measures to stimulate demand are needed to support industrial investment and maintain steel production in Europe, she said.
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