One of the tools to increase demand for green materials is public procurement

Germany’s Federal Ministry for Economic Affairs and Climate Protection has presented its concept for creating a market for environmentally friendly products as the country seeks to become carbon-neutral by 2045 and looks for ways to reduce emissions in the steel, cement and chemical industries. Reuters reports.

In addition to subsidies to help energy-intensive companies switch to green production, which the German government introduced earlier this year, the country wants to create demand for goods produced with a lower greenhouse effect – but they are usually more expensive than those made in the traditional way.

The concept includes industry-specific definitions of climate-neutral steel, cement, ethylene, and ammonia, as well as a corresponding labeling system.

«Our vision is the wind turbine made of green steel, which is based on a foundation of green cement, and the electric car, which not only runs CO2-free but is also made of green steel,» said Economy Minister Robert Habeck.

According to the minister, setting quotas for climate-neutral goods for public procurement, which accounts for 15% of the German economy, is a possible tool to promote green markets until they become the standard in Germany from 2045 and in Europe by 2050.

In the European market, the German ministry proposes to introduce mandatory requirements for the emission intensity of raw materials and products.

In April 2024, the German steel association WV Stahl and the Ministry of Economic Affairs and Climate Protection presented the Low Emission Steel Standard (LESS). Its central element is a labeling system that uses a graduated classification scale. The standard was created for international cooperation and is a voluntary labeling system open to all steel producers.