Climate protection: Clean supply seeks clean demand – Economy

A green wind turbine can certainly be white. For example, the foundation would be green, made of climate-neutral cement. Much of the steel would also be green if it were not made with coke but with hydrogen. The wind turbine would look like all the others. It would just be more expensive.

According to Federal Economics Minister Robert Habeck, “green lead markets” should give such clean materials a boost. Green steel produced in a climate-friendly manner could be traded on these markets and a separate price would be established for it. There is demand for this because either the public sector insists on green components when it commissions bridges or buildings, or because European rules require such components in products. In 2050, that is Habeck’s plan, climate neutrality should also be achieved in heavy industry, at least with the exception of “unavoidable residual emissions”.

Habeck has now taken a first step – with a concept for four areas in which a green market could be set up: steel, cement, ammonia and ethylene. One 60-page study commissioned by the ministry lists how the green variants could be defined. Such clarity would be necessary for something like a green label to be able to develop at all. However, the concept is only a starting point for discussion, because ultimately such a market would have to be created at a European level.

A year ago, the ministry’s scientific advisory board gave a clear vote in favor of the green lead markets. They are “the better instrument for expanding the production of climate-neutral raw materials,” the council wrote in a report. He was convinced that the state only intervenes minimally in these markets – and that ultimately consumers bear the additional costs of ensuring that their products are no longer produced at the expense of the climate. However, they also warned of the difficult start-up phase – after all, companies are initially unsure whether the new business is worth it. And whether the laws will permanently require the green variants is at least uncertain. The advisory board therefore also advocated introducing the new system at European level.

Habeck sees it no differently. “We are now approaching the EU Commission,” he says. Implementation must take place there. But industry is already on board. “Basically, many companies know that this is the way forward for future production,” says the Green minister.

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In fact, just last month the Steel Industry Association had one Draft for a “Low emission steel standard” proposed, or Less for short. The Ministry of Economic Affairs’ concept now also goes in this direction. A near-zero standard could be defined; the concept suggests a CO₂ footprint of 520 kilograms per ton of steel. Hot-rolled steel currently produces around three times as much carbon dioxide. “It is important that, based on the definitions found, concrete measures are now initiated promptly to develop demand for green raw materials,” demands Martin Theuringer, head of the business association.

According to Habeck’s idea, this demand should go through the “distributors”. In the case of the steel industry, that would literally be the automobile industry. This would mean that the green standard would apply to all steelworks, whether in Europe or elsewhere. The ministry advertises that the additional costs for a car with climate-friendly materials – from steel to plastic to aluminum – are lower than a new metallic paint job, citing economic figures.

New procurement guidelines, which the federal government is currently discussing internally, should also pave the way for green standards. This would make it easier for the public sector to make the use of climate-friendly building materials and the like a requirement. Klemens Haselsteiner, head of the construction company Strabag, also praises the move in the right direction. “There are innovative, sustainable front runners,” he says. Once their products are approved in one federal state, other countries would hardly be able to avoid this. This is how the market develops its own dynamics – when things are going well.

The climate club, founded by Chancellor Olaf Scholz, is also intended to help spread the idea. And at the next climate summit in November in Azerbaijan, the ministry hopes to see “decisive progress” – towards international standards.

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