To cushion the coal phase-out in East Germany, the EU Commission has in principle approved state compensation for the mining company Leag. This involves an amount of up to 1.75 billion euros, as the Federal Ministry of Economics announced on Tuesday in Berlin. The background is the agreed gradual phase-out of coal by 2038. Economics and Climate Protection Minister Robert Habeck (Greens) spoke of an important step, especially for the people of the region. “This secures compensation money for the social security of employees in the transition and for the follow-up costs of opencast mining.” Leag boss Thorsten Kramer said that the compensation was an essential building block for the company’s further successful transformation into a “green powerhouse.” Germany had the planned one Compensation has already been registered with the Commission in 2021. Coal-fired power generation in Germany should actually only be phased out after 2038. In order for state money to flow, the competition authorities in Brussels must give the green light. If a country in the EU wants to support companies with state money, it must adhere to strict rules. Now there has been a fundamental decision by the EU Commission. In a “preliminary” assessment under state aid law, this had basically confirmed the compensation scheme for Leag’s lignite phase-out, it was said. 1.2 billion euros in “fixed costs” Specifically, it is about 1.2 billion euros in “fixed costs” for follow-up costs for opencast mining – that is, above all Recultivation costs – as well as social costs such as social agreements. This happens regardless of when Leag actually phases out coal-fired power generation. According to the ministry, the remainder of up to 550 million euros is tied to conditions. It will be taken into account if it is confirmed in the future that Leag’s power plants would have been economical beyond the decommissioning dates provided for in the law to end coal-fired power generation and thus Leag profits are lost due to the statutory exit regulation. For the Rhenish Revier, politicians and the energy company RWE have agreed on a coal phase-out brought forward by eight years to 2030. However, an early phase-out of coal in the East German lignite mining areas is controversial. The traffic light coalition made up of the SPD, the Greens and the FDP had agreed in its coalition agreement to “ideally” bring forward the coal phase-out from 2038 to 2030. “Do not make any efforts to change the legal deadline,” Habeck said at the beginning of 2023, bringing it forward to 2030 Exit in the East must also be agreed upon by consensus. “This will not be decided by order of the mufti, but rather it must be perceived as a good plan in a broad alliance.” In a paper from the ministry on Monday, with a view to the East German coalfields, it was emphasized that the legally agreed exit from coal-fired power generation by The year 2038 will last. “The federal government will not make any political efforts to change this legal deadline.” At the same time, it said: A possible market-driven exit before 2038, as well as measures by the states and districts, remain unaffected. The background is a reform of European emissions trading, which is intended to make climate-damaging coal-fired power generation increasingly unprofitable. The ministry also refers to the progressive expansion of renewable energies as well as the planned construction of new gas power plants that are to be converted to hydrogen – and the legal possibility of bringing forward the coal phase-out to 2035. More on the topic The paper says: “In the event that Since coal-fired power generation will no longer be profitable well before 2038 and the phase-out will also come earlier in the East German coal regions, it is important to prepare the transition now as best as possible.” Habeck announced on Monday that the federal government would have leeway in state funding programs wants to expand the existing coal regions. This is intended to accelerate structural change. Direct investments in company locations should now also be made possible. In December, the EU Commission approved a billion-dollar compensation payment for the early exit of the energy company RWE from lignite mining and power generation in North Rhine-Westphalia. RWE will therefore receive a staggered total of around 2.6 billion euros by 2030. The EU Commission announced in Brussels that the compensation payment constituted state aid. But it is necessary so that RWE can phase out its lignite-fired power plants. RWE wants to operate lignite-fired power plants until the end of March 2030, but is not ruling out subsequent reserve operation at the expense of the federal government.
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