In January 2020, the German government announced plans to close all of its coal-based power plants by the year 2038. In the meantime, it will begin phasing out the use of brown coal, or lignite, as part of its energy production program. Despite the fact that lignite is one of the dirtiest fossil fuels, historically, nearly a quarter of Germany’s energy has come from mining and burning lignite, and it has been the world’s leader in the use of lignite for energy production.
As part of its plan to phase out lignite as a source of energy, the German government has struck a deal worth 40 billion euro with its coal-producing states. It intends to compensate not only the states, but also companies affected by the phase-out, including power plants and mines, as well as individuals who work in those industries. Affected states are expected to continue receiving support until 2038.
Germany also intends to provide an annual subsidy to support green energy companies in order to offset the loss of coal-powered energy, creating opportunity for companies engaged in the production of alternative sources of power.
Global Risk Intel has determined that climate change is one of the most pressing Top Global Risks of 2020.
