EU commissioner backs eastern German coal region鈥檚 ambition to become European phase-out model
With a visit by EU commissioner Thierry Breton, the eastern German coal phase-out region Lusatia has launched its bid to become Europe鈥檚 first so-called Net Zero Valley (NZV) that hosts a fully climate-neutral local industry. 鈥淭he EU Commission is ready to support this proposal,鈥� Breton said at the event held at the Schwarze Pumpe coal plant on the border of the two eastern German states Brandenburg and Saxony. The EU鈥檚 internal market commissioner pointed out that Lusatia is the first region in Europe that could benefit from the novel NZV programme, which aims to bundle infrastructure development and funding to transform industrial regions to become net-zero and attract investment in future technologies.
鈥淚鈥檓 confident that this is feasible and can be done soon,鈥� Breton told journalists at the event. He stressed that Lusatia could serve as a prime example for an industrial transformation that 鈥渁ffects the entire continent,鈥� not least because the region so far 鈥渉as been 100 percent dependent on lignite鈥� for its prosperity.
Breton said EU funding for the聽scheme, which is part of the bloc鈥檚 (NZIA),聽is in place and could help the coal mining region 鈥渄o what needs to be done.鈥� In particular, the NZV would mean 鈥渕ore subsidies for projects, more investment, easier licensing, infrastructure expansion, the creation of local training centres and more high-quality jobs.鈥� Pointing at major investments in semiconductor manufacturing in Saxony鈥檚 capital Dresden and other future technology projects in the wider Lusatia region, the EU commissioner said creating a new foundation for an industry that fully runs on clean energy and manages its greenhouse gas emissions is within reach. 鈥淲e need to deregulate and cut red tape鈥� to implement the vision of a climate neutral industry after coal mining in Germany ends in 2038 at the very latest, he said.
A communal alliance of mayors in the region in March to become the EU鈥檚 first NZV model region. In the context of its national coal phase-out law, the German government already earmarked more than 40 billions of euros in funding for managing the transition away from coal. The funds that are paid out over many years are supposed to serve an anchor for private investments by providing modern infrastructure, tax incentives, training programmes and other instruments to ensure the exit from the fossil fuel does not hurt the local economy. The rural region located between Berlin and Dresden also suffers from a shortage of skilled workers to fill positions in new industries and renewable power production that聽could become a greater problem for its economic prospects聽than the loss of its remaining coal industry jobs, researchers of the local聽Technical University of Cottbus-Senftenberg found earlier this year.
Breton鈥檚 visit to the eastern coal region ahead of the EU elections puts a spotlight on Germany鈥檚 economic slump linked to the energy crisis while pushing ahead with its energy transition. Robert Habeck in February commended the region鈥檚 representatives for making great efforts to become the first NZV, arguing that Lusatia 鈥渋s shaping transformation in a very concrete way with its own ideas and projects鈥� as a region 鈥渢hat is聽hit particularly hard by structural change.鈥�
鈥淟usatia no longer will be a region in endless transition"
Conservative Christian Democrat (CDU) politician Christian Ehler, who represents the region in the European Parliament, said parts of the state aid scheme still subject to approval by the EU must get the green light before the upcoming elections in three eastern German states, Thuringia, Saxony, and Brandenburg in September this year to present voters a clear roadmap for the transition. 鈥淟usatia no longer will be a region in endless transition, but we now have a clear vision for the future,鈥� Ehler argued.
With a view to the far-right Alternative for Germany鈥檚 (AfD) very strong polling in each of the three eastern German states for the regional elections, he urged other parties to present a clear consensus and rally behind the climate neutral reset of Lusatia鈥檚 industry. 鈥淭his process goes well beyond mere economic support,鈥� he cautioned. The AfD has made its opposition to the country鈥檚 planned 2038 coal exit a key battle ground on energy policy.
麻豆无码版 company Leag, which operates the lignite mines and coal plants in the region, is still awaiting approval of about 1.75 billion euros in support to facilitate its own transition to climate neutrality through projects like hydrogen-fired power plants, large-scale battery storage or renewable energy expansion. Leag CEO Thorsten Kramer also stressed that the funding is needed soon to get ahead with 鈥済ood ideas that otherwise lose their drive in the process.鈥� After awaiting approval for about two years, creating an NZV in Lusatia could permanently increase the speed of change, Kramer argued. 鈥淥ur business model will be obsolete today in 14 years,鈥� the manager said, adding that the alternatives for the currently still 7 gigawatts of coal power would have to be fully established by that time. 鈥淟ife in this region will change fundamentally,鈥� he added.
Speaking for Saxony鈥檚 CDU-led state government, Oliver Schenk, the head of the state鈥檚 chancellery, said Lusatia would bear the brunt of Germany鈥檚 coal exit. 鈥淭his is not being appreciated everywhere,鈥� Schenk argued. With a view to plans by the government coalition of the Social Democrats (SPD), the Green Party and the pro-business Free Democrats (FDP), to pull the coal phase-out forward to 鈥渋deally鈥� 2030, the state minister from Saxony said changing the current timetable would 鈥渃reate uncertainty鈥� in the region that further adds to the existing transformation pressure. He said any plan to end coal-fired power production before 2038 would have to be fully backed up by securing an alternative energy supply and providing jobs and growth perspectives for the otherwise economically weak region. Relying on the German government alone would not be enough in this case, which is why Saxony supports the EU鈥檚 NZV scheme for Lusatia. 鈥淲e cannot afford to make this a disappointment,鈥� Schenk warned.
