German union warns: Backtracking on green steel costs jobs

Germany's steel industry faces a critical juncture as the IG Metall union urges policymakers to maintain commitments to climate-neutral production. Union leaders warn that any rollback of emissions trading rules would penalize pioneering companies like Salzgitter and Saarstahl, which have already invested heavily in "green steel" technologies.

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It must be the clear signal: we stand by the business model of green steel.

"It must be the clear signal: we stand by the business model of green steel," said Jürgen Kerner, the union's deputy chairman. He emphasized that the government's promised eight billion euros in subsidies requires predictability for these companies. Rolling back climate targets, he cautioned, risks not only taxpayer money but also the jobs of thousands of workers at the forefront of this transition, estimating around 20,000 positions are at stake.

Kerner also criticized the continued import of over three million tons of Russian steel into Europe, calling for EU sanctions to block these shipments. The German steel sector, concentrated in regions like North Rhine-Westphalia, Lower Saxony, and Saarland, has been struggling for years with economic downturns, high U.S. tariffs, and competition from low-cost Asian steel. Production fell to 34.1 million tons of crude steel in 2025, its lowest point since the 2009 financial crisis.

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We are talking about 20,000 jobs.

As the EU Commission prepares to revise emissions trading rules in July, pressure is mounting from industry and some political factions to ease the burden of CO2 certificate trading on businesses. This potential shift has sparked concerns, with Saarland's state premier Anke Rehlinger warning of a "step backward." The IG Metall plans to increase pressure on the federal government with rallies in Berlin and Völklingen, expecting thousands of participants from across the country.

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The glass is only half full.