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BGH decision causes concern in the green steel sector

The green steel industry in Germany has taken an important turn with the recent ruling of the Federal Court of Justice (BGH). The stainless steel trader Gerber Group warned that the ruling could cause serious problems for the industry.

BGH decision causes concern in the green steel sector

The BGH has decided to restrict the use of the ‘climate neutral’ label in product promotions. It ruled that in order to be able to use this term, it must be made clear to consumers how climate neutrality is achieved.

A spokesperson for the BGH stated in a statement that the judgement does not currently apply to steel or steel-related industries and that a similar case for these industries is not yet pending. However, the Gerber Group argues that such cases could and should also be on the agenda for the steel industry. Gerber assessed this situation with the question ‘is this the end of green steel transparency?’.

In a comment published on its website, the Gerber Group noted that the BGH judgement could seriously shake the concept of ‘green steel’ and create difficulties for many producers. The company argued that steel producers are constantly introducing new and eye-catching labels, the sole purpose of which is to create a lack of transparency about CO2 emissions.

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