Burning out

21 May 2015 By Olaf Storbeck

Berlin is likely to water down a proposed levy on carbon-rich lignite coal plants. But that’s just a short reprieve for stricken legacy utilities like RWE and Vattenfall. Germany’s ambitious climate policies still mean many coal-fired plants will have to go off the grid early.

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The German government is discussing a new levy aimed at reducing the carbon emissions of lignite coal power plants.

The economy ministry initially suggested a plan forcing operators of old and high-polluting plants to cut emissions by an additional 22 million tonnes by 2020. Thousands of coal workers marched in Berlin in April to protest against the idea, which unions say could put 100,000 jobs at risk.

According to documents seen by Reuters on May 18, Germany’s economic ministry is now willing to soften the emission target to 16 million tonnes, reducing the potential financial penalties for old, carbon-intensive plants.

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