Germany To Compensate From Coal Companies


Germany is one step closer to finalising legislation on the planned coal exit by 2038 at the latest, as the government approved a draft contract between the state and companies to flesh out the country’s farewell to lignite.

Among other things, the draft lays out details on how the announced 4.35 billion euros in compensation will be paid to lignite operators and stipulates its use to restore the landscape after mining has finished. Environmentalists noted with relief that the contract in its current form would not prevent an earlier exit from coal should market conditions turn coal plants uneconomical. The government also aims to improve phase-out conditions for hard coal, following months of complaints by companies that they were at a disadvantage compared to lignite companies. Hard coal operators have to win auctions for early shutdown remuneration. Draft amendments seen by Clean Energy Wire stipulate higher maximum remuneration in the planned auctions and a one-year extension of the scheme. Researchers said that despite the proposed changes, the legislation still deviated significantly from the compromise reached by the coal exit commission in early 2019. The amendments will now be debated in parliament. The German government still wants the package to be decided before the summer break.