Federal government expands scope for funding programs in coal regions

The federal government wants to expand the scope for state funding programs in the former coal regions and thus promote the establishment of new economic sectors. In a paper from the Ministry of Economic Affairs and Climate Protection available to Deutsche Presse-Agentur, it also emphasizes with regard to the eastern German coal regions that the legally agreed phase-out of coal-fired power generation by 2038 remains in place. "The Federal Government will not make any political efforts to change this statutory deadline." A possible market-driven phase-out before 2038, as well as measures by the federal states and coal-mining regions, would remain unaffected by this.

Economy and Climate Protection Minister Robert Habeck (Greens), who is speaking at the East German Economic Forum in Bad Saarow, Brandenburg, this morning, had already spoken out in favor of an earlier coal phase-out in the east as well. With regard to the reform of EU emissions trading, the paper states: "In the event that coal-fired power generation is no longer viable well before 2038 and the phase-out also comes earlier in the eastern German coal regions, it is important to prepare the transition as well as possible now."

According to the paper, the Ministry of Economic Affairs and Climate Protection has agreed a package with the Ministry of Finance to better support the coal regions. According to this, direct investments in company relocations are to be made possible. Investments in "green" transformation technologies, among other things, are to be initiated in lignite regions. Funding periods for financial assistance are to be made more flexible. It should also be possible to spend unused project funds up to three years after the end of a funding period.

In addition, the federal "STARK" program is to be expanded in coordination with the federal states. In order to improve the transport infrastructure in the mining areas, the planning of rail projects that have already been approved should be started, including the expansion of the Berlin-Görlitz line.

The federal government is supporting the coal regions with billions in funding to phase out climate-damaging coal-fired power generation. Politicians and the energy company RWE have agreed to phase out coal in the Rhenish mining area eight years earlier, in 2030.

Habeck had said at the beginning of 2023 that an early phase-out to 2030 in the east would also have to be agreed by consensus. "This will not be decided par ordre du mufti, but must be perceived as a good plan by a broad alliance."