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11 Apr 2016, 00:00
Julian Wettengel

German steelworkers fight EU plans for emissions trading

"Clean Steel is our Future!" - participants of the rally in Duisburg. Photo: 91tv.
With backing from economy minister Sigmar Gabriel, thousands of German steelworkers rallied against EU reform plans for the European Emissions Trading System (ETS) on Monday. Gabriel said there must be no contradiction between climate protection and a successful industry, and Germany must show that both go hand in hand. Critics said global overcapacities were causing trouble in the industry, rather than efforts to protect the climate.

In cities across Germany, more than 40,000 steelworkers protested against what they called Chinese dumping prices and the ETS reform they fear would put German industry at a disadvantage in the global market, .

"Industry's success is the precondition for other countries to join in protecting our climate," Gabriel said听 at the rally at ThyssenKrupp in Duisburg, Germany鈥檚 biggest steel production site. He called steel the "material of the Energiewende," pointing to its prominent role in construction and manufacturing.

Gabriel, a likely contender for chancellor in next year's parliamenary election, threw his weight behind a that the top 10 percent of the most efficient steel production facilities should receive emission allowances free of charge after the planned ETS reform. He also promised no to support any EU plans that might give climate protection a higher priority than job security in the steel industry.听

Mobilised by unions and employers鈥� associations, the protests come at a time when the EU and Germany struggle to meet climate goals and just after听Federal Environment Agency (UBA)reportedthat CO2 emissions from the German iron and steel industry increased in 2015.

The German steel industry opposes the European Commission's ETS reform plans, which would reduce the overall number of emission allowances at an annual rate of 2.2 percent from 2021 to 2030. An oversupply of certificates has led to a collapse in prices, making the ETS an ineffective tool in the fight against climate change. The industry current technologies offer little potential to decrease emissions without cutting back production.

"Today, we are fighting against policy targets that exceed technical possibilities by far,鈥� said the President of the German Steel Federation (WV Stahl) Hans-J眉rgen Kerkhoff at the rally. The federation warns the EU Commission鈥檚 reform proposals would mean additional annual costs of one billion euros in the coming decade, putting hundreds of thousands of jobs at risk.

Workers at the rally called for a fair treatment of the German steel industry, demanding global regulations to reduce emissions should create a level playing field. Instead of paying for certificates, companies should be allowed to make better use of their capital: 鈥淥ur employers have to invest more in research and development for cleaner technologies in steel production鈥�, Detlef Jentsch, union representative and production worker at ThyssenKrupp, told the 91tv. He agrees that the fight against climate change is important: 鈥淲e have a responsibility towards our children 鈥� today is about their future.鈥�

Environmental NGO Germanwatch said the embattled ETS had become the industry鈥檚 scapegoat. 鈥淭he steel lobby uses highly unlikely horror scenarios 鈥� energy intensive industry also has to do its bit to protect the climate,鈥� read. Industry and unions waged a campaign against the ETS and discredited overdue reforms, while the industry鈥檚 real problem were massive overcapacities, Germanwatch said.

Eva Bulling-Schr枚ter, energy and climate spokesperson of the Left Party鈥檚 parliamentary group, said steel workers鈥� job concerns were justified, but the overcapacities had nothing to do with European emissions trading. 鈥淭his is why not less, but more climate protection has to be the motto for the steel industry after the Paris climate agreement.鈥� She added steel companies had earned a lot of money with the ETS, by selling unused certificates they had received free of charge.

Find a 91tv factsheet on the ETS here.

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