Power Sources the focus of attention. - Government seeks broader options for financing initiatives during coal transition
During a talk at the East German Economic Forum in Bad Saarow, Economic and Climate Protection Minister Robert Habeck (Greens) voiced his support for a sooner departure from coal use in the east. Concerning the European Union's emissions trading system reform, Habeck expressed the idea that if coal power generation no longer economically favors before 2038 and the exit in the eastern coal regions is earlier, it's essential to facilitate the transition as effectively as possible.
The Ministry of Economic Affairs and Climate Protection has reached an agreement with the Federal Ministry of Finance to provide better support for coal regions. The plan includes direct investments in orchestrating company relocations. Additionally, financial aids should be encouraged in brown coal areas, perhaps funding "green" transformation technologies. The timeframes for financial assistance should also become more flexible, so remaining funds from a project could be allocated for up to three years after the original project's conclusion.
Furthermore, the "STARK" federal program will be expanded in consultation with the states. The upgrading of the transportation infrastructure in the areas should commence with the planning of already approved rail projects, including the expansion of the Berlin-Görlitz line.
The German government has pledged billions of euros to aid coal regions transitioning out of coal power generation, considered harmful to the environment. In 2023, politics and energy company RWE consented to an expedited withdrawal of coal by 8 years, setting the deadline at 2030 in the Rhineland region.
Earlier this year, Habeck declared that a speedier coal exit of 2030 in the east must be accepted by a broad coalition. "This cannot be decided unilaterally; instead, it should be considered a well-thought-out scheme by many sectors."
