Following the German Federal Cabinet's approval of the 2027 draft budget on July 6, the German Steel Federation (WV Stahl) expressed concern over the planned cuts to the Climate and Transformation Fund (KTF). The association noted that the KTF's economic plan will be presented next week and stressed that funding supporting the transformation of German industry should not be reduced.
Kerstin Maria Rippel, Managing Director of WV Stahl, said that the future transfer of EUR 2.7 billion in revenues from the European Union Emissions Trading System (EU ETS) from the KTF to the federal budget sends a serious warning signal for industry.
Energy price support must be maintained
Rippel stated that the planned consolidation of the KTF must not result in the withdrawal of the energy price support measures that the federal government recently introduced for next year.
She emphasized that all revenues generated from industrial companies through the EU ETS should be reinvested in industry, arguing that this would strengthen competitiveness while supporting the transition to climate-neutral production.
Continuation of electricity price measures requested
WV Stahl warned that reallocating KTF funds could jeopardize the industrial electricity price measures currently in place.
The association stressed that subsidies for transmission network charges, electricity price compensation and the industrial electricity price mechanism are essential tools for maintaining the competitiveness of Germany's manufacturing industry.
Rippel added that these support mechanisms should not only be maintained but also be strengthened and expanded.
According to WV Stahl, keeping the total industrial electricity price at EUR 50/MWh must remain a key objective to enable companies to continue their long-term investments and successfully achieve the transition to climate-neutral production.
2045 target: Climate-neutral steel production
Based in Berlin, WV Stahl represents Germany's steel industry and aims to achieve climate-neutral steel production by 2045. The association stated that this transformation could contribute to reducing approximately one-third of Germany's total industrial greenhouse gas emissions.
WV Stahl also reiterated its commitment to promoting the political framework needed to ensure a competitive, low-emission German steel industry, noting that Germany remained Europe's largest steel producer in 2025 with crude steel output of 34.1 million mt.
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