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ENVIRONMENT

Germany’s struggling Social Democrats pledge to make climate top priority

With his Social Democrats (SPD) lagging in the polls behind the Greens and the Christian Democrats, German Finance Minister Olaf Scholz on Sunday pledged to prioritise climate change as he leads the party into September general elections.

Germany's struggling Social Democrats pledge to make climate top priority
German Finance Minister Olaf Scholz speaking on Sunday in Berlin in front of a sign reading "Out of respect for your future". Photo: picture alliance/dpa | Wolfgang Kumm

“It’s about the future of our country… the path Germany must follow in the 21st Century,” Scholz told a socially-distanced SPD party congress after winning 96.2 percent support of 600 delegates to be their candidate in the September 26th election.

The poll marks a crossroads in German politics as Chancellor Angela Markel bows out after 16 years in power.

New Christian Democratic (CDU) leader Armin Laschet will look to replace Merkel, who currently runs a CDU-led coalition in which the SPD serves as junior partner.

But both traditional heavyweights are playing catch-up as latest polls
place the Green Party in the lead with 26 percent of voting intentions to 23-25 for the CDU as the SPD trails on 14-16.

Having won his party’s nomination last year, 62-year-old former Hamburg mayor Scholz said he was in the process of laying a “foundation for change” and urged the party to “get to work.”

Portraying himself as a “committed European” he said climate change had to be a top priority as it comprised “this century’s essential human mission”.

READ ALSO: Popular SPD politician Olaf Scholz announces run for German chancellor

“We have already lost too much time… We want to achieve carbon neutrality by 2045 by the latest,” he added. That target has been brought forward from an initial coalition pledge of 2045.

The SPD also wants electricity to be produced exclusively via renewable sources by 2040.

A futher party pledge as the party looks to wrest back the polling momentum from the Greens, who have propelled environmental issues centre stage, is to get 30 million electric vehicles on the road by the end of this decade.

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ENVIRONMENT

Sweden’s SSAB to build €4.5bn green steel plant in Luleå 

The Swedish steel giant SSAB has announced plans to build a new steel plant in Luleå for 52 billion kronor (€4.5 billion), with the new plant expected to produce 2.5 million tons of steel a year from 2028.

Sweden's SSAB to build €4.5bn green steel plant in Luleå 

“The transformation of Luleå is a major step on our journey to fossil-free steel production,” the company’s chief executive, Martin Lindqvist, said in a press release. “We will remove seven percent of Sweden’s carbon dioxide emissions, strengthen our competitiveness and secure jobs with the most cost-effective and sustainable sheet metal production in Europe.”

The new mini-mill, which is expected to start production at the end of 2028 and to hit full capacity in 2029, will include two electric arc furnaces, advanced secondary metallurgy, a direct strip rolling mill to produce SSABs specialty products, and a cold rolling complex to develop premium products for the transport industry.

It will be fed partly from hydrogen reduced iron ore produced at the HYBRIT joint venture in Gälliväre and partly with scrap steel. The company hopes to receive its environemntal permits by the end of 2024.

READ ALSO: 

The announcement comes just one week after SSAB revealed that it was seeking $500m in funding from the US government to develop a second HYBRIT manufacturing facility, using green hydrogen instead of fossil fuels to produce direct reduced iron and steel.

The company said it also hoped to expand capacity at SSAB’s steel mill in Montpelier, Iowa. 

The two new investment announcements strengthen the company’s claim to be the global pioneer in fossil-free steel.

It produced the world’s first sponge iron made with hydrogen instead of coke at its Hybrit pilot plant in Luleå in 2021. Gälliväre was chosen that same year as the site for the world’s first industrial scale plant using the technology. 

In 2023, SSAB announced it would transform its steel mill in Oxelösund to fossil-free production.

The company’s Raahe mill in Finland, which currently has new most advanced equipment, will be the last of the company’s big plants to shift away from blast furnaces. 

The steel industry currently produces 7 percent of the world’s carbon dioxide emissions, and shifting to hydrogen reduced steel and closing blast furnaces will reduce Sweden’s carbon emissions by 10 per cent and Finland’s by 7 per cent.

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