A coalition of eleven German states is lobbying the European Commission to integrate the use of “green” steel into automotive emissions calculations, a move intended to safeguard jobs and bolster European industrial competitiveness as the continent grapples with a potential easing of combustion engine regulations.
In a letter to European Commission President Ursula von der Leyen, the state premiers – representing regions with significant automotive and steel industries – propose that emissions-reduced steel used in vehicle production should be factored into the overall CO2 footprint of automobiles. This suggestion is strategically timed alongside discussions surrounding a possible relaxation of the EU’s planned 2035 ban on new combustion engine vehicles. The states argue that a unified approach connecting decarbonization efforts in the steel and automotive sectors is essential for achieving climate targets, preserving employment and maintaining the EU’s industrial lead.
The move is seen as a means to offset potential backsliding on emissions reductions if the combustion engine ban is softened, allowing manufacturers to demonstrate progress toward climate goals without entirely abandoning existing engine technologies. According to the premiers, the adoption of “green” steel could reduce CO2 emissions from automotive production by as much as 6.9 million tonnes by 2030 – equivalent to the annual emissions of 3.5 million gasoline-powered vehicles. This would potentially allow up to 25% of new cars sold within the EU to be initially calculated as CO2-neutral.
While the EU currently mandates zero tailpipe emissions for new vehicles from 2035 onwards, the state premiers echo the federal government’s call for a lifecycle emissions assessment, arguing that focusing solely on tailpipe emissions provides an incomplete picture of environmental impact. The letter underscores the substantial investments already underway within the German steel sector to transition to low-carbon production methods.
The signatory states – including Niedersachsen, Saarland, Baden-Württemberg, Bayern, Bremen, Brandenburg, Hessen, Sachsen, Nordrhein-Westfalen, Rheinland-Pfalz and Thüringen – represent a significant economic bloc within Germany and the EU, raising questions about the potential political pressure the Commission may face in considering the proposal. Critics, however, might question whether this represents a pragmatic response to industrial pressures or a strategic maneuver to delay more comprehensive decarbonization measures within the automotive sector. The proposal also raises concerns about the potential for “greenwashing” if stringent verification and certification standards for “green” steel are not implemented effectively.
