EU clears $3.2 billion in green subsidies for Thyssenkrupp, ArcelorMittal

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EU clears $3.2 billion in green subsidies for Thyssenkrupp, ArcelorMittal
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The European Commission on Thursday cleared 2.85 billion euros ($3.20 billion) in aid to support the continent's two biggest steelmakers, ArcelorMittal and Thyssenkrupp , in their efforts to reduce carbon emissions.

A red hot slab of steel moves along a conveyor at the ArcelorMittal metals plant in Dunkirk as part of a media tour dedicated to the reduction of carbon intensity of the industry in France, January 16, 2023. REUTERS/Benoit Tessier/File photoThyssenkrupp shares +1.7%, ArcelorMittal +2.5%

In addition, it displays the bloc's willingness to prevent industry from leaving to other subsidy-rich regions, most notably the United States, which has"This will contribute to the greening of one the most polluting sectors, while helping reduce Germany's dependence on imported fossil fuels and develop the renewable hydrogen value chain in the EU," said EU antitrust chief Margrethe Vestager.

Apart from the Thyssenkrupp funding, which is split into a 550 million-euro direct grant and a conditional payment mechanism of up to 1.45 billion euros, the Commission also approved an 850 million-euro package Paris had put in place for ArcelorMittal.

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