Coal phase-out in Lusatia: unequal distribution of funds

Energy - Coal phase-out in Lusatia: unequal distribution of funds

The one billion and two hundred million Euros in "fixed costs" for post-mining costs - primarily reclamation costs - do not go to equal parts in Brandenburg and Saxony. "Based on the total commitment and the shares in the states, the quote for Brandenburg is 43 percent and 57 percent for the Free State of Saxony," explained a spokesperson for the Brandenburg Economy Ministry in response to a query. The extent of the reclamation depends on the specific concepts, which vary in scope.

To cushion the coal phase-out in Eastern Germany, the EU Commission has given the green light in principle for state compensation for the mining company Leag. This concerns a sum of up to one billion and seven hundred and fifty million Euros. The background is the agreed-upon phased coal phase-out by 2038. The one billion and two hundred million Euros for reclamation and social agreements flow independently of when Leag actually exits coal-fired power generation.

The remaining amount of up to five hundred and fifty million Euros, according to the Federal Ministry of Economics, is contingent on conditions. It will then be taken into account if it is proven in the future that Leag's power plants were also economically viable beyond the coal phase-out dates specified in the law on the termination of coal-fired power generation, and Leag therefore lost profits due to the statutory exit regulation.

The Greens in the Brandenburg State Parliament had recently criticized that the allocation of funds by the Economy Minister had been insufficiently explained. Now, approximately 43 percent of the compensation amount, or five hundred and sixteen million Euros, is flowing to Brandenburg. Approximately six hundred and eighty-four million Euros are going to Saxony. "The question of the costs of reclamation and the financing of LEAG with tax funds remains a book with seven seals, even for us parliamentarians," had the leader of the Green fraction, Benjamin Raschke, said at the beginning of the week. The Brandenburg State Chancellery must finally enable transparency.

1. The dispute over the distribution of the post-mining costs, specifically the reclamation costs, between Brandenburg and Saxony has been a topic of discussion.
2. In Brandenburg, the fixed costs for post-mining, mainly reculitivation costs, amount to approximately 43% of the total commitment.
3. The EU Commission has considered the high energy consumption and associated costs in the Lusatia region when allocating funds for the coal phase-out.
4. The fixed costs for post-mining, including reclamation and social agreements, are not directly linked to the coal phase-out timeline set by Leag's exit from coal-fired power generation.
5. The remaining funds of up to 550 million Euros for Leag are subject to conditions, such as proving the power plants' economic viability beyond the coal phase-out dates and losses due to the statutory exit regulation.
6. The EU Commission's decision to compensate Leag for the coal phase-out costs has been criticized by the Green parliamentary fraction in Brandenburg for lacking transparency in allocation, particularly regarding reclamation costs.

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