Germany faces a difficult industrial balancing act as it seeks to decarbonise steel while protecting manufacturing resilience. The German Economic Institute says domestic steelmaking remains strategically important because its value chain supports millions of jobs & supplies major industries. Green steel projects globally are also facing delays due to high investment costs, uncertain hydrogen prices & weak offtake commitments. The institute therefore calls for competitive energy, transformation funding, climate-friendly lead markets & stronger trade safeguards to help Germany retain industrial capacity during the transition.