German state leaders are calling on the European Commission to strengthen support for low-carbon steel in the EU automotive sector, arguing that coordinated action is essential for Europe’s climate and industrial goals.
Eleven prime ministers of Germany’s federal states made the appeal in a joint letter to Commission President Ursula von der Leyen, according to a statement released by the German steel association WV Stahl.
The initiative comes from Saarland and Lower Saxony, two regions that host major steelmaking and automotive hubs. They are pressing for clear regulatory alignment between the steel and car industries to ensure the transition to climate neutrality is both efficient and strategically coordinated.
The proposal calls for new mechanisms that would encourage automakers to buy certified low-CO₂ steel, thereby reducing the carbon footprint of vehicle production.
Supporters argue that such incentives would help safeguard the competitiveness of European manufacturers while advancing EU climate objectives.
WV Stahl CEO Kerstin Maria Rippel said that stronger policy decisions could reinforce Europe’s industrial foundation amid rising global competition.
She stressed that “Clean Steel made in Germany and the EU” should underpin the region’s industrial future, and that creating market incentives for green steel is vital for drawing new investment.
German steelmakers are already implementing major modernization and decarbonization projects. But the association said faster progress requires a stable regulatory framework and formalized cooperation between the steel and automotive sectors.
Such measures, it noted, would help cut emissions while also protecting jobs and preserving the EU’s industrial value chain.
Economists at the University of Mannheim estimate that a collapse of domestic steel production could cost Germany up to €50 billion each year. They warn that the country would be highly exposed in a global steel crisis if production capacity were to shut down or move abroad.
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