In case this new proposal should be implemented, huge additional costs – which would not affect foreign competitors – could arise for the European steel producers. At a certificate price of 30 euros per tonne of CO2, the German steel industry would be threatened by unbearable burdens of up to 1 billion euros per annum between 2021 and 2030 (next trading period for certificates). “This proposal jeopardises the future of the steel industry and thousands of jobs in a dramatic way“, comments Frank Schulz, CEO of ArcelorMittal Germany Holding.
He calls for fair competitive conditions for the steel industry in Germany and Europe. A free allocation of certificates on a basis of realistic benchmarks is therefore indispensable for industries that face international competition, such as the steel industry. In addition, electricity price hikes caused by emission trading have to be fully compensated, in order to maintain fair competition for all market players. “That’s the only way how we as a steel producer can contribute to climate protection through our innovative products“, says Frank Schulz.