The federal administration aims to offer increased aid to regions dependent on coal energy for structural transformation.

Encourage schemes - The federal administration aims to offer increased aid to regions dependent on coal energy for structural transformation.

The Federal Government plans to broaden the reach of state funding programs for regions that used to rely on coal, aiming to speed up the transition to a greener economy. Now, it's possible to invest directly in company towns. For instance, funding could be earmarked for solar sector development, said Robert Habeck, Economic and Climate Protection Minister (Greens) during an event in Bad Saarow, Brandenburg.

Before moving on to an earlier coal phase-out?

According to a report from the Ministry of Economics and Climate Protection, the planned exit from coal-powered energy by 2038 stays unchanged. The federal government has no plans to change this legal deadline. Market forces and state initiatives to fast-track the departure from coal remain undisturbed.

The reason behind this push is the ongoing reform of Europe's Emissions Trading System, the goal of which is to make coal-powered generator systems less profitable. The ministry also refers to the ongoing expansion of renewable energy sources and the planned construction of new gas plants that will be converted to hydrogen power. The legal option to bring the coal exit forward to 2035 is mentioned.

The report says, "If the coal-powered energy industry quits earlier than 2038, and the exit also occurs faster in Eastern coal regions, we must prepare for the transition as effectively as possible."

In the Rhineland area, there's an agreement between politics and energy company RWE to expedite the coal exit, moving it ahead eight years to 2030.

Earlier in 2023, Habeck noted that a 2030 coal exit in the East has to be negotiated with consensus. "This won't be decided by decree - it needs to be seen as a sound strategy by a wide group of people."

The Federal Government is already investing billions of euros to assist in the transition of coal regions. However, there's been a lack of opportunities so far to support corporate investment in clean technologies.

This will change: The Federal Government will now back direct investments in company towns — for example, the creation of production facilities for battery manufacturing, solar panel fabrication, wind turbine production, or heat pump development. This could spur the local economy, reduce reliance on fossil energy sources, and accelerate the transformation of businesses.

Habeck remarked that funds have previously been reserved for infrastructure development. But, the regions have been requesting the right to promote and fund companies focused on transition technologies. "There are companies eager to establish themselves and money that won't go to waste — because we don't need more twelfth bus stop houses. There's capital available, and there are businesses yearning to take action. Let's bring them together."

The ministry suggests making funding periods more adaptable, allowing unused funds from specific projects to be spent up to three years after the conclusion of that project. They also hope to increase the federal program "STARK" in collaboration with the states. To enhance transportation infrastructure in the regions, planning for already approved rail projects should commence, including the expansion of the Berlin-Görlitz route.

Read also:

1. The Federal Government aims to expand support programs for coal-dependent regions, facilitating investment in sectors like solar energy, as mentioned by Robert Habeck in Bad Saarow.
2. Despite the planned coal phase-out by 2038, the report suggests preparing for an earlier exit, especially in Eastern coal regions, to ensure an effective transition.
3. The Federal Government has pledged to support direct investments in company towns, promoting the establishment of clean technology businesses and reducing reliance on fossil energy sources.
4. Habeck emphasized the need for adaptable funding periods, allowing unused funds to be utilized for up to three years after project completion, and a potential increase in the "STARK" federal program in collaboration with the states.
5. In light of the structural change required, the Federal Government should prioritize planning and implementing rail projects, such as expanding the Berlin-Görlitz route, to enhance transportation infrastructure in coal regions.

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