The German federal government agreed an electricity price package in early November, with a reduction in taxes on electricity seen as a key measure. This undoubtedly represents a meaningful first step, but from the perspective of steel company ArcelorMittal and its staff, it does not go far enough.
Although this move helps to enhance Germany’s status as an attractive place to do business, there is no relief on electricity bills for energy-intensive companies that compete internationally.
During a recent nationwide day of action in Berlin, ArcelorMittal, its staff and metalworkers’ union IG Metall called for a tangible reduction in electricity prices and a commitment to the subsidies for which applications have been submitted. Those assembled made the case that this was the only way in which the country could move ahead on the path of transformation and meet all the goals of a strong, climate-neutral place to do business.
From ArcelorMittal Germany’s perspective as an employer, managing director Andre Körner makes the critical current situation clear:
“Germany’s climate targets for 2030 and beyond are set in stone and have to be pursued going forward. With regard to all our decarbonisation projects in Bremen, Duisburg, Eisenhüttenstadt and Hamburg, we are disappointed and, above all, concerned because confirmation of promised grants is still missing – and, along with it, any perspective for our industrial production in Germany as part of this transformation.
The actions of policy-makers – in both government and opposition – are grossly negligent in this regard. There is a risk of damage to the German economy if alternatives are not immediately provided for the funding and continuation of the planned transformation projects.”
The Federal Ministry for Economic Affairs and Climate Action has previously given the go-ahead for multiple ArcelorMittal projects to start early. On this basis, ArcelorMittal has already incurred expenses running into the millions.
The steel industry plays a key role for achieving a climate-neutral economy – its future-focused projects will save more than 7 million tonnes of CO₂ each year, making their efficiency extremely important for Germany in terms of achieving the climate targets set for 2030.
From the company’s point of view, when it comes to next steps, the top priority is to roll out investments that are permissible under the constitution and to set a temporary electricity price cap that will bridge the gap until an efficient, climate-neutral electricity system can guarantee competitive prices.
