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ENVIRONMENT

German climate groups plan legal action against car giants

German environmental groups on Friday announced a legal offensive against car giants Volkswagen, Daimler and BMW to force them to reduce emissions faster, emboldened by recent court victories in favour of climate protection.

German climate groups plan legal action against car giants
The DUH have long fought for cleaner air. Photo: picture alliance/dpa | David Inderlied

Greenpeace Germany and Deutsche Umwelthilfe (DUH) said they have sent a claim letter to the three carmakers asking them to commit to more ambitious targets for reducing carbon emissions, including ending production of fossil-fuel cars by 2030.

If they do not respond to the letter in the coming weeks and halt their “illegal behaviour”, the NGOs said they are ready to file lawsuits in court.

“We are holding those companies to account that have been destroying our climate for years,” DUH executive director Sascha Mueller-Kraenner told a press conference.

While all three car companies have announced plans to transition from diesel and petrol cars to more environmentally-friendly electric vehicles, the plaintiffs say their goals are vague and non-binding.

“The companies’ electrification plans are not ambitious enough and too slow. They won’t be enough to avert the climate crisis,” said Greenpeace’s Martin Kaiser.

A fourth company, German oil and gas firm Wintershall Dea, is also being targeted in the legal proceedings for its role in the climate emergency.

The complaints, if they go ahead, would be a first in Germany.

The plaintiffs are basing their case on a landmark verdict by Germany’s constitutional court in April which found that Germany’s plans to curb CO2 emissions were insufficient to meet the targets of the Paris climate agreement and placed an unfair burden on future generations.

In a major win for activists, Chancellor Angela Merkel’s government then brought forward its date for carbon neutrality by five years to 2045, and raised its 2030 target for greenhouse gas reductions.

Greenpeace’s Kaiser said the plaintiffs also received “a tailwind” from a court ruling in the Netherlands in May, which ordered oil giant Shell to slash its carbon emissions by 2030.

‘No basis’

Fridays for Future activist Clara Mayer, who is acting as a plaintiff in the case against VW, said recent deadly floods in western Germany had shown that the climate emergency “is now right outside our front door”.

She said VW, as one of the world’s largest carmakers and a major CO2 emitter, had “an immense responsibility”.

The 12-brand group, which also includes Audi, Porsche and Skoda, said in a statement that it did not believe the campaigner’s legal route was “an appropriate way to solve important societal challenges”.

It added that VW was investing 35 billion euros ($41 billion) in its bid to become a global leader in electric vehicles by 2025.

Mercedes-Benz maker Daimler meanwhile said it “sees no basis” for the injunction demand and vowed to defend itself “through all legal means” should it come to a lawsuit.

Luxury carmaker BMW reiterated that the company was committed to the Paris climate agreement, which aims to limit global warming to 1.5 degrees Celsius compared with pre-industrial levels.

The spectre of legal action against the car manufacturers comes just days before the IAA auto show, one of the world’s biggest, opens its doors in Munich.

Climate campaigners have vowed to stage protests to disrupt the event.

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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.

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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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