FRANKFURT (dpa-AFX): IG Metall is warning against rolling back the transformation of the struggling steel industry toward climate-neutral production. If European emissions trading standards are weakened, companies that have already committed to this path will be penalized, said Jürgen Kerner, Vice Chairman of IG Metall, in Frankfurt. "There must be a clear signal: We stand by the green steel business model."

Policymakers have pledged approximately €8bn in subsidies for the steel sector's transformation. Companies that have already taken steps toward green steel, such as Salzgitter and Saarstahl, require predictability. If climate regulations are now rolled back, it is not just taxpayer money at stake, but also the jobs at these pioneering firms. "We are talking about 20,000 jobs," Kerner noted. At the same time, Kerner criticized the fact that more than 3m tons of steel from Russia continue to enter Europe. He argued that EU sanctions must be used to prevent this.

The German steel industry, which is primarily concentrated in North Rhine-Westphalia, Lower Saxony, and the Saarland, has been in crisis for years. It is grappling with an economic downturn, high U.S. steel tariffs, and competition from cheap steel, particularly from Asia. In 2025, German crude steel production fell to 34.1m tons: the lowest level since the 2009 financial crisis. New production facilities for climate-friendly "green" steel, which operate on natural gas and eventually hydrogen, require massive capital expenditures from the industry while the market for such products remains in its infancy.

A U-Turn on Climate Regulations?

In Brussels, the EU Commission intends to present proposals for a revision of emissions trading in July. Pressure is mounting from industry and certain political factions to soften this climate protection instrument to reduce the financial burden of CO2 certificate trading on the economy. Anke Rehlinger (SPD), the Premier of Saarland, believes the restructuring of the domestic steel industry is at risk and recently warned Chancellor Friedrich Merz (CDU) in a letter against a policy U-turn.

IG Metall plans to increase pressure on the federal government with a rally in Berlin this Friday. Participants from approximately 30 steel plants across the country are expected, totaling around a thousand people. Simultaneously, a rally will take place in Völklingen in the Saarland, where several thousand participants are anticipated.

Politicians have already taken several steps for the steel industry, Kerner said, citing the industrial electricity price and increased EU tariffs against cheap imports. However, he warned that the federal government must not stop halfway. "The glass is only half full."

The WSM steel and metal processing association criticized that it is not only steel producers under pressure, but also steel processors. The sector accounts for nearly half a m jobs but feels largely overlooked by EU protective measures against steel imports. "Pressure from Asia is increasingly pushing sheet metal and massive forming companies, as well as screw and spring manufacturers, out of the competition." The association argues that the federal government must reduce labor costs to make these mostly medium-sized companies competitive again./als/lea/DP/jha