Energy: Coal phase-out: Federal government plans more flexible funding programs

Energy: Coal phase-out: Federal government plans more flexible funding programs

The federal government wants to promote the establishment of new economic sectors in former coal regions and emphasizes that the legal phase-out of coal will remain in place until 2038.

The federal government wants to expand the scope for state funding programs in the existing coal regions and thus promote the establishment of new economic sectors.

In a paper from the Ministry of Economic Affairs and Climate Protection, which was made available to the German Press Agency, it is also emphasized with regard to the East German coalfields that the legally agreed phase-out of coal-fired power generation by 2038 remains in place. “The federal government will not make any political efforts to change this legal deadline.” A possible market-driven phase-out before 2038, as well as measures by the states and coalfields, remain unaffected.

Economics and Climate Protection Minister Robert Habeck (Greens), who will speak this morning at the East German Economic Forum in Bad Saarow, Brandenburg, had already spoken out in favor of an earlier phase-out of coal in the east as well. With regard to the reform of the EU emissions trading system, the paper states: “In the event that coal-fired power generation is no longer profitable well before 2038 and the phase-out also comes earlier in the East German coal regions, it is important to prepare the transition as best as possible now.”

Package agreed to better support coal regions

According to the paper, the Ministry of Economic Affairs and Climate Protection has agreed with the Ministry of Finance on a package to better support the coal regions. According to this, direct investments in company settlements are to be made possible. Investments in “green” transformation technologies, among other things, are to be initiated in lignite regions. Funding periods for financial aid are to be made more flexible. Unused funds from a project should therefore also be able to be spent up to three years after the end of a funding period.

In addition, the federal program “STARK” is to be expanded in coordination with the states. In order to improve the transport infrastructure in the mining areas, planning should begin on rail projects that have already been decided upon, including the expansion of the Berlin-Görlitz route.

Billions in funding for coal regions to phase out coal-fired power generation

The federal government is supporting the coal regions with billions in funding to phase out climate-damaging coal-fired power generation. For the Rhineland region, politicians and the energy company RWE have agreed to bring the phase-out of coal forward by eight years to 2030.

At the beginning of 2023, Habeck said that an exit brought forward to 2030 in the east would also have to be agreed by consensus. “This will not be decided par ordre du mufti, but it must be seen as a good plan in a broad alliance.”

Source: Stern

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