Germany unveils plan for eco-friendly product market

Germany’s economy ministry has introduced a concept to establish a market for eco-friendly products as part of the country’s goal to become carbon neutral by 2045, Reuters reported on Wednesday.

The plan involves reducing emissions in the steel, cement, and chemical industries.

In addition to subsidies launched earlier this year to assist energy-intensive companies in transitioning to green production, the government aims to stimulate demand for goods with a lower carbon footprint, despite their higher cost compared to conventionally produced goods.

The concept includes specific definitions for climate-friendly steel, cement, ethylene, and ammonia, along with a labelling system. Economy Minister Robert Habeck envisions wind turbines made of green steel, based on a foundation of green cement, and electric cars made of green steel that run CO2-free.

The ministry proposes setting quotas for green goods in public procurement, which constitutes 15 per cent of Europe’s largest economy, as a potential strategy to promote green markets until they become standard in Germany by 2045 and in Europe by 2050.

At the European level, the ministry plans to introduce binding emission requirements for raw materials and products.