Germany announced its plan to shut down 84 power plants that use black coal starting in 2020, which is a part of the phase-out coal plan. The country's goal for this plan is to get rid of all coal plants by 2038. This move is expected to cost around 40 billion euros or $44 billion.
Black coal, also known as anthracite or hard coal, is top-grade coal that has high-energy density. Lower-grade coal, also known as brown coal or lignite, is also used by coal power plants.
The German government announced its contribution to climate protection last month, as climate change is felt at an alarming rate. This announcement included details on the implementation of their coal exit, and it stated that by 2022, around 12 hard coal plants would be shut down.
The Federal Environmental Agency reported that 45 plants in Germany run either fully on hard coal or partially on hard coal. The German government also wants to reach a deal on shutting down plants that use brown coal, as they are waiting to agree on a framework for the compensation that they are going to give the companies.
In 2020, the German government will decide how many gigawatts of brown coal-produced energy will fall from the grid, and that will be decided yearly. The utilities will be then asked to submit compensation estimates that they can settle. Sources of this plan said that the cost of shutting down plants that use brown coal is lower than 1 billion euros.
There is still no solid report if Chancellor Angela Merkel's coalition government can finance the measures that they want to do for climate protection, as there is a chance that their coal exit can result in taking on new debt.
This change can include a pricing mechanism for carbon emissions and payouts for families that fall under the low-income category to support the effects of this change that the government wants to pursue.
Germany's climate cabinet includes Finance Minister Olaf Scholz, Merkel, Environment Minister Svenja Schulze, and Economy Minister Peter Altmaier, and they agreed on the package last month.
Claudia Kemfert, professor for energy economics at the DIW Berlin, German Institute for Economic Research, stated that their change for climate policy could make Germany a leader again in fighting climate change. This plan is important, and it is a signal for the world that they are serious about their fight against climate change.
