In the east, there's preliminary support from Brussels for compensating coal phase-out.

In the east, there's preliminary support from Brussels for compensating coal phase-out.

As per the Federal Ministry of Economics, a total of 1.2 billion euros has been agreed upon in the political accord. In case the compensation incident arises, i.e., if the Leag removes the power plants from the grid, an additional 550 million euros can be dispensed. The "technical execution" of this pact will also take some time, mentioned Habeck.

The German government mandated the coal phase-out legally until 2038. To assist RWE, a company in the Rhineland lignite mining area and the Leag, they promised several billions of euros. However, the European Commission has raised concerns over the appropriateness of these compensations, leading to a review process.

Last year, RWE's subsidies were approved as part of an agreement made with the company to advance the coal phase-out in the Rhineland to 2030. Meanwhile, the Leag insists on retaining the exit year 2038, leading to complicated negotiations with Brussels competitors.

Ines Froehlich (SPD), State Secretary in the Saxon State Ministry for Economics, Labor, and Transport, expressed her complete satisfaction and relief. The State Minister of Brandenburg, Jorg Steinbach (SPD), termed the accomplishment a "significant landmark for Brandenburg and Saxony." "We now have clarity on which payments are accepted," he stated.

Habeck, meanwhile, shared his views on an early lignite phase-out in the east, a stance supported by the federal government. Nevertheless, this was denied by the local stakeholders. In light of the escalating CO2 price and the proliferation of renewable energy, Habeck sees an early end to coal-fired power generation from both an environmental and economic perspective. On the contrary, Leag's CEO, Thorsten Kramer, championed his company's strategy, asserting that lignite coal is vital for regional supply security.

Read also:

1. The Federal Ministry of Economics is involved in the coal phase-out negotiations in Germany, particularly focusing on compensations in the lignite mining area.
2. RWE, a company based in the Rhineland lignite mining area, has received subsidies for assisting in the coal phase-out, as approved by Brussels last year.
3. The State Secretary in the Saxon State Ministry for Economics, Labor, and Transport, Ines Froehlich (SPD), and the State Minister of Brandenburg, Jorg Steinbach (SPD), have expressed satisfaction with the agreed-upon compensations.
4. The European Commission has raised concerns over the appropriateness of the compensations for the coal phase-out in Germany, leading to a review process.
5. Despite the local stakeholders denying an early lignite phase-out in the east, German Federal Minister Robert Habeck supports an early end to coal-fired power generation from an environmental and economic perspective.
6. Brussels has preliminary support for compensating the coal phase-out in the eastern regions of Germany, notably Brandenburg and Saxony.
7. Thorsten Kramer, the CEO of Leag, a company involved in lignite mining, asserts that lignite coal is vital for regional supply security, contrasting Habeck's stance.

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