Dillinger has outlined that the proposed changes to the European Emissions Trading Systems (ETS1) lack the clarity needed for confident investment into climate-neutral steel.
It highlighted that Dillinger and Saarstahl are investing €4.6bn into the Power4Steel transformation projects at their sites in Dillingen and Völklingen, but that these projects are based on having a reliable political framework and an effective ETS as the central instrument of climate policy.
Stefan Rauber, Chair of the board of directors at Dillinger and Saarstahl, said: “The people who guide the regulatory framework in a particular direction over the course of years – as do the German government and the European Union – have a responsibility.
“Without a reliable signal regarding CO₂ prices, investments in climate-friendly technologies lose their economic basis – and along with that goes the credibility of European climate and industrial policy.”
Furthermore, the interventions described lead to a lowering of the CO₂ price signal, posing massive challenges for first-mover companies.
While it criticised sections of the proposed changes, the steelmakers stated that it did demonstrate that the European Commission remains committed to the fundamental principles of the European ETS.
Dillinger and Saarstahl will now examine the European Commission’s proposal in detail.
