Public Coal Phase Out (LINGO Incentives)

Germany’s Coal Commission was established in 2018 to create a consensus on phasing out coal, balancing economic, social, and energy security concerns.The commission proposed a coal phase-out by 2038, requiring 69-93 billion euros in funding, with 40 billion euros allocated to support coal-dependent regions through retraining, early retirement, and infrastructure investments.

The commission’s key recommendations aimed to increase renewable energy to 65% of gross electricity consumption by 2030 and 80% by 2050, modernize energy infrastructure in coal regions, relocate 5,000 federal employees to these areas by 2028, and compensate power plant operators for shutdowns. The plan also addressed potential energy price increases by lowering transmission grid charges and proposed mechanisms to maintain affordability for consumers.

Despite this, in 2022, Germany’s coal use increased by 8.4% compared to 2021, highlighting ongoing challenges. However, the commission’s success lies in achieving broad stakeholder agreement, with only one dissenting vote, and has since inspired similar initiatives globally, such as in Korea.

Resources :

• Agora Energiewende (2019) German Coal Commission: Equity in Coal Phase-Out Report, March 2019

• E3G (2023), Germany on track to exit coal, Blog Post, August 2023
• Rinscheid A, Wüstenhagen R. (2019), Germany’s decision to phase out coal by 2038 lags behind citizens’ timing preferences., Paper, August 2019
• RWE (2022), Agreement on coal phase-out 2030, Press Release, October 2022
• WRI (2021), Germany’s “Coal Commission”: Guiding an Inclusive Coal Phase-Out, Blog Post, March 2021