German Finance Minister Opposes 2030 Coal Exit Without Viable and Secure Alternatives

02 Nov, 2023

German Finance Minister Opposes 2030 Coal Exit Without Viable and Secure Alternatives

German Finance Minister Raises Concerns Over 2030 Coal Phase-Out

Christian Lindner, Germany's Finance Minister, has rejected the idea of a coal phase-out by 2030 if the country cannot secure affordable energy, according to a report by Kölner Stadt-Anzeiger. Lindner, the leader of the pro-business Free Democrats, emphasized the need for energy availability and affordability before committing to a coal phase-out. He also questioned the effectiveness of a 2030 deadline, pointing out that under European rules, CO2 emissions saved in Germany might simply accrue in other countries, like Poland.

Environmental NGOs and climate experts have previously expressed concerns about the "waterbed effect," where emissions reductions in one place lead to emissions increases elsewhere. In contrast, the German economy ministry has repeatedly stated its intention to nullify the EU Emissions Trading System allowances released through the coal exit to prevent this phenomenon.

The Free Democrats (FDP) are part of Germany's current three-way government coalition, along with the Social Democrats (SPD) and the Green Party. In their coalition agreement, the parties aimed to advance the coal phase-out to 2030 from the legal deadline of 2038. While the western coal mining state of North Rhine-Westphalia has agreed to phase out coal by the end of the decade, federal states in the eastern part of Germany have been more critical, citing challenges related to energy generation capacities and economic opportunities.

Lindner also stressed that it's not the right time to shut down power plants, highlighting the high costs of energy due to its relative scarcity. He opposed the economy minister's plan for an industry power price and called for the rapid expansion of renewable energy and increased domestic gas production as part of a more comprehensive energy strategy.