Salzgitter Steel Boss Criticises Plan To Relax Emissions Trading Rules
WOLFSBURG, Germany, July 18 (Bernama-dpa) -- The chief executive of German steelmaker Salzgitter AG, Gunnar Groebler, has criticised the European Commission’s proposal to reform the EU’s flagship emissions trading system (ETS), reported German news agency dpa.
Writing on the LinkedIn platform on Friday, the same day the EU proposal to relax the ETS rules was unveiled, Groebler said the plan could undermine climate investments and penalise companies that have already begun the transition.
Several industry sectors and EU member states had lobbied for changes to the ETS, warning of further factory closures and production relocations if changes were not made.
Groebler wrote in German: "An industrial policy that retroactively changes the rules of the game must not leave pioneering companies out in the cold."
Salzgitter has already invested billions of euros in its shift to green steel, based on expectations of a stable and reliable regulatory framework, Groebler said. He warned that easing ETS rules could undermine those investments.
The Lower Saxony-based steelmaker began converting its Salzgitter plant at the end of 2023.
The German federal government and the state of Lower Saxony are supporting the project with about €1.3 billion (US$1.5 billion).
The first green steel facility is set to start production in 2027. Instead of using a coal-fired blast furnace, the new plant is set to initially run on natural gas before switching to green hydrogen.
Groebler warned that companies that invested under existing EU rules should not be disadvantaged by later changes.
--BERNAMA-dpa
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