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ENVIRONMENT

‘We need a meat tax’: German politicians pitch plan to improve animal welfare

The meat industry currently pays less than half of Germany's standard VAT (value added tax). Now many are arguing that that it's high time for this to change.

'We need a meat tax': German politicians pitch plan to improve animal welfare
Photo: DPA

German politicians are speaking out in favour of raising the VAT (Mehrwertsteuer) on meat in a bid to improve animal welfare and cut CO2 emissions. 

The decision makers want to raise the tax to the standard VAT, or 19 percent, up from the current seven percent that consumers are required to pay for meat products.

“I’m in favour of raising the VAT reduction and using it for greater animal protection” said Friedrich Ostendorf, a Greens spokesman on agricultural policy.

He pointed out that there is no reason that the meat should be taxed less, while products such as oat milk are taxed the standard 19 percent VAT.

The increase was originally put forward by Germany’s Animal Welfare Association. “Parallel to the CO2 tax, we also need a meat tax,” its president Thomas Schröder said, pointing out that meat, milk and eggs only cost “a few cents” per kilo. 

The increased VAT, say the politicians, would have the double advantage of reducing CO2 emissions.

In its 2016 climate protection plan, Germany's so-called 'grand coalition' – made up of Chancellor Angela Merkel's  Christian Democrats and the centre-left Social Democrats – agreed in targets for the agricultural sector: by 2030, emissions should fall by 31 to 34 percent compared with 1990 levels.

'It would affect consumers'

The proposed increase comes as Germany continues to face increased scrutiny over how it treats its livestock. 

In June, Germany’s top court controversially ruled that the slaughtering of male chicks – about 45 million per year – may continue in the poultry industry.

SEE ALSO: Germany allows slaughter of male chicks to continue

Rainer Spiering, the SPD's agricultural policy spokesman, also felt that a meat tax could reduce consumption but that “it would mostly affect consumers,” rather than leading to a shift in standards in the meat industry. 

He added that meat producers and food retailers would also have to make a contribution to sustainable livestock farming.

Christian Democratic (CDU) agricultural politician Albert Stegemann said the “meat tax” was a “constructive” first step to changing farming practices, but that the extra funds generated by it should go back to the livestock industry directly.

“This additional income would have to be used as an animal welfare premium in order to support the livestock farmers in Germany during their restructuring,” said Stegemann.

“The road to socially sustainable livestock farming would cost billions of euros, which farmers in Germany would not be able to bear alone.

Bernhard Krüsken, General Secretary of the German Farmers' Association, spoke out against the tax on Wednesday.

“It is not the tax authorities but farmers who need funds and support for the further development of animal husbandry,” he said.

Opting for a vegetarian diet

Since 2011 meat consumption in Germany has been decreasing, with 2,000 Germans per day deciding to go vegetarian, according to supermarket group REWE. 

There are a total of eight million vegetarians in the country, according to current estimates, or 10 percent of the population. 

The turn to a meat-free diet has led to a slew of more affordably priced vegetarian and vegan products throughout the country, yet many consumers still complain these are priced too high, reports bento. 

“Do vegetables cost too much, or meat too little?” the online newspaper asked rhetorically.

SEE ALSO: Meat consumption drops significantly as more Germans spurn the sausage

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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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