Germany adds brown coal to energy exit under landmark deal

Germany adds brown coal to energy exit under landmark deal

Germany is set to become the first country to drop both nuclear and coal power under a landmark agreement to compensate workers, companies and regional governments as it switches off brown coal-fired plants by 2038, Trend reports citing Reuters.

The government struck a deal worth more than 40 billion euros ($44.7 billion) in the small hours of Thursday morning with the premiers of Germany’s coal-mining regions.

Once the heartland of Germany industry, the coal regions of North-Rhine Westphalia have fallen on hard times as traditional heavy industries have lost sway, while coal regions in the east have yet to fully shrug off the impact of four decades in Communist East Germany.

Designed to ensure Europe’s largest economy meets its 2030 target for cutting greenhouse gas emissions, the exit will be accompanied by heavy investments in renewable energy.

“Germany, one of the strongest and most successful industry nations in the world, is taking huge steps towards leaving the fossil fuel era,” Finance Minister Olaf Scholz told a news conference.

The decision marks a major turnaround for Chancellor Angela Merkel’s conservative-Social Democrat coalition. It abandoned as unachievable a key emissions target shortly before taking office in 2017, only to change course after growing public concerns about climate change fuelled a surge in polls by the Green Party.

“These were tough negotiations,” Environment Minister Svenja Schulze said. “But you can see the result - we are the first country that has a binding agreement to exit coal and nuclear power - and that’s an important signal internationally.”

Economy Minister Peter Altmaier said the legislation would be brought before parliament by the end of January.

The oldest, dirtiest plants, some dating back to the 1950s, will go first, starting with a 300MW plant in the Rhineland scheduled to close this year. Over the following 18 years, the remaining 29 will close.

“What we have here is a good agreement for climate protection because it makes it clear that we mean business,” Altmaier told a news conference.

Caught on the hop when a series of unusually hot summers and the impact of Swedish schoolgirl Greta Thunberg’s Fridays for Future movement caused public opinion to turn, the German government last year introduced a major climate package, which included economy-wide carbon pricing.

The government added on Thursday that carbon emissions certificates held by power stations would be cancelled after they close, a move that should cap emissions and drive up the prices for certificates traded under the European Union’s scheme.

Analysts thought the impact on the coal market would be limited, since EU demand for coal has long stagnated in the face of competition from renewables and gas. Coal prices fell 40% last year and have barely recovered since.

Economy Minister Peter Altmaier said the legislation would be brought before parliament by the end of January.

The oldest, dirtiest plants, some dating back to the 1950s, will go first, starting with a 300MW plant in the Rhineland scheduled to close this year. Over the following 18 years, the remaining 29 will close.

“What we have here is a good agreement for climate protection because it makes it clear that we mean business,” Altmaier told a news conference.

Caught on the hop when a series of unusually hot summers and the impact of Swedish schoolgirl Greta Thunberg’s Fridays for Future movement caused public opinion to turn, the German government last year introduced a major climate package, which included economy-wide carbon pricing.

The government added on Thursday that carbon emissions certificates held by power stations would be cancelled after they close, a move that should cap emissions and drive up the prices for certificates traded under the European Union’s scheme.

Analysts thought the impact on the coal market would be limited, since EU demand for coal has long stagnated in the face of competition from renewables and gas. Coal prices fell 40% last year and have barely recovered since.

The process will see at least one more coal-fired power station brought online before a complete exit from coal. Utility Uniper’s (UN01.DE) new Datteln 4 coal-fired power plant will be connected to the grid, since the modern unit is cleaner than the first stations to be taken off line.

Elsewhere, the loss of energy caused by the coal exit will be offset by adding natural gas-powered capacity at existing plants, for example at Jaenschwalde in Brandenburg.

Subscribe to Trend in Google News! Subscribe
Ten injured after bridge collapses in U.S. city Pittsburgh
Ten injured after bridge collapses in U.S. city Pittsburgh
Robinhood posts $423 mln net loss, shares sink after hours
Robinhood posts $423 mln net loss, shares sink after hours
Oil heads for sixth weekly gain amid supply concerns
Oil heads for sixth weekly gain amid supply concerns
Loading Bars
Latest
UN thanks Azerbaijan for contributions to budget of organization
Residents of Bina settlement express gratitude to President Ilham Aliyev and First Lady Mehriban Aliyeva for establishment of Training and Service Complex (PHOTO/VIDEO)
Russia expands retaliatory list of EU representatives banned from entering country — MFA
Ten injured after bridge collapses in U.S. city Pittsburgh
Iran deal talks are adjourned until next week — EU
Erdogan to visit Ukraine on Feb 3 as part of mediation efforts
Germany's exports to UK continue to decline in 2021: Destatis
Azerbaijan's Agency for State Support to NGOs, Turkey's Ministry of Interior sign memorandum of co-op (PHOTO)
Embassy of India organised Blood Donation Drive (PHOTO)
Tractor hits mine in Azerbaijan's Fuzuli district
Uzbek Central Bank notes growth in volume of loans issued to individuals
Uzbekistan shares data on loan portfolio of its banks for 2021
Russian veterans urge to check Union of Armenians in Russia regarding film about Garegin Nzhdeh
Azerbaijan's Nakhchivan reveals revenue data from communication and information services
Remains of Armenian soldier found in Azerbaijan's Fuzuli district
GDP of Azerbaijan's Nakhchivan growing
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 3,564 more COVID-19 cases, 1,004 recoveries
Russia allocates credit line for construction of Iran`s Sirik power plant - minister
National Bank of Georgia to adopt regulations for cryptocurrency trading platforms
Azerbaijan’s Nakhchivan discloses loans issued to population
Azerbaijan Entrepreneurship Development Fund to help businesses create corporate governance mechanisms
German RBC consulting company talks achievements in work on Azerbaijani market
Kazakh president calls on Nur Otan party members to focus on some priorities
Iran Oil Industry Pension Fund eyes to invest in oil and energy sectors
Uzbek UzAuto Motors to generate higher revenue in 2022
Azerbaijan’s Buta Airways becomes most active passenger carrier in Georgia
Kazakhstan-based Nostrum unveils oil production indicators for 2021
Turkmenistan assisting in delivery of Turkish humanitarian aid to Afghanistan
Azerbaijan to increase number of bus routes to Karabakh (Exclusive)
Azerbaijan discloses number of passengers of regular bus trips to liberated Shusha, Aghdam
President Ilham Aliyev congratulates president of Kazakhstan on election as chairman of Nur Otan party
Uzbekistan proposes India to develop co-op in healthcare, education and IT
Azerbaijani President Ilham Aliyev signs order on 30th anniversary of Khojaly genocide
Israel signs deal with Novavax for COVID vaccine
Azerbaijan's ANAMA builds new mobile field camp in Aghdam district (PHOTO)
TBC Capital shares data on mortgage loans issuance in Georgia
Turkmen Commodity Exchange discloses data on imports from East Asian countries
SOFAZ places €1 billion deposit with Central Bank of Turkey
Iran seeks to prevent import of luxury goods
India & 5 Central Asian Countries To Form Joint Working Group On Afghanistan
Azerbaijan's foreign trade turnover notably up in 2021
Azerbaijani deputy PM to attend opening ceremony of Olympic Winter Games in Beijing
Uzbekistan sees growth in agricultural production
India for ‘greater urgency’ in trade negotiations with EU, says EAM Jaishankar
Georgia increases textile exports to Turkey
Romanian energy minister to visit Azerbaijan
Azerbaijan records decline in foreign currency sales - chairman of CBA
Georgia’s imports of oil products from Kazakhstan plummet
Turkmenistan to increase electricity supply to Afghanistan
Central Bank of Azerbaijan names allocations made to support national currency rate in 2015
Azerbaijan to build astronomical station in Karabakh region
Use of cryptocurrency not endangering stability of Azerbaijani national currency - CBA
Central Bank of Azerbaijan plans to sign agreement with int’l consulting company
UNIDO to offer expertise for Turkmen energy sector
Central Bank of Azerbaijan names priorities for development of insurance sector
Our first president made huge contribution to strengthening of state - President Tokayev
Nur Otan party should be led by person who was nominated and supported by it in presidential election - Nazarbayev
CBA expects inflation to return to target range Azerbaijan in 2023
Devotion to interests of country has particular importance in politics - Kazakh president
Iran working on connecting of Gilan ports to national railway network
Share of electricity in Azerbaijan’s total exports down
Siraf Pars Port in Iran becomes country's major liquid gas exporter
Global food prices rise to highest level over past decade - FAO (Exclusive)
Decree regulating process of charity on part of big business to be issues in Kazakhstan
French 2021 economic growth strongest in 52 years at 7%
Kazakh-Russian copper deposit dev't project approved by Russia's Main Department of State Expertise
Azerbaijan reveals petroleum coke, oil bitumen exports
Buta Airways to resume flights to Mineralnye Vody in February
Turkmenistan sees decline in trade turnover with Azerbaijan
We'll return to issue of expediency of my further chairmanship in Nur Otan after some time - Tokayev
Representative body of Kazakhstan's Nur Otan party updated by 55%
Azerbaijan unveils volume of transactions via Apple Pay
Public councils created under Nur Otan party should become effective platform - Tokayev
Azerbaijani Central Bank not planning to create new legislative base to regulate digital banks
Central Bank discloses Azerbaijan's possible current account balance in 2022
Potential of Nur Otan party wasn't fully utilized at critical moment - Tokayev
Currency rate of Azerbaijani manat to be stable in 2022 - CBA
Military reforms, increasing of combat capability of troops to be priority in 2022 – Azerbaijan MoD
Dariga Nazarbayeva resigned from Kazakhstan Nur Otan party
Azerbaijan reveals Top 10 oil importers
Azerbaijani CBA forecasts increase in demand for foreign currency
Rothschild & Co eyes creation of special financial zones in Georgia
Azerbaijan increases share of natural gas in exports
Annual inflation to be above target range in Azerbaijan - CBA
Nur Otan Party needs to renew itself - Tokayev
Turkmen enterprise eyes to expand tomato production
Non-OPEC won’t return to pre-COVID levels of oil output
Azerbaijan defense minister expresses condolences to Pakistan
Additional barrels from OPEC+ back to market in 2022 to be less than headline figure
Azerbaijan continues restoration and construction work on its liberated lands
Kazakh president elected chairman of Nur Otan Party
Azerbaijani President Ilham Aliyev awards WCO Sec-Gen with 'Dostlug' order
Global oil demand to surpass pre-pandemic levels this year
Uzbekistan plans to implement new projects jointly with AIIB
After 20 years, privatisation programme in India off to 'Maharaja' start
Armenian troops open fire at Azerbaijani positions in direction of Tovuz district
CBA denies rumor on currency swap deal between Azerbaijani, Turkish central banks
Azerbaijan reveals inflation rate for 2021
Buta Airways to start operating flights to Kharkiv in May and increase number of flights to Kiev
All news