Germany Coalition 'Launch Imminent'... Agreement on Phased Coal-Fired Power Plant Closure by 2030

Olaf Scholz, current German Vice Chancellor and Finance Minister, to lead Germany's next coalition government
[Photo by Reuters]

[Asia Economy Reporter Byunghee Park] Major foreign media reported on the 23rd (local time) that the German coalition government, set to be launched soon, has agreed to gradually phase out coal-fired power plants by 2030. The Green Party's general election pledge to advance the coal-fired power plant phase-out date from the existing 2038 to 2030 was adopted during the coalition negotiation process.

The coalition negotiations among the Social Democratic Party, the Green Party, and the Free Democratic Party, which ranked 1st, 3rd, and 4th in the German general election on September 26, have reached their final stages. According to officials, the coalition agreement is expected to be announced soon.

Environmental policies were a major issue in the general election. The Green Party, which campaigned on an environmental platform, recorded a support rate of 14.8%, up 5.9 percentage points from the 2017 general election, marking the highest vote share since its founding in 1980. Environmental policies were also a key agenda item during the coalition negotiations.

The gradual phase-out of coal power plants by 2030 is a significant advancement compared to the 'Glasgow Climate Pact' finalized at the 26th United Nations Climate Change Conference of the Parties (COP26) earlier this month. The Glasgow Climate Pact included a commitment to gradually reduce coal power without carbon capture devices. Although coal reduction was mentioned for the first time in a COP agreement, the specific phase-out date was omitted, and the wording was softened from the originally discussed 'phase-out' to 'phase-down,' which sparked controversy.

The coalition also agreed to phase out gas-fired power plants by 2040. Additionally, they agreed to ban gas heating systems in new homes and to replace existing gas heating systems with eco-friendly heating systems.

Furthermore, a new Ministry of Climate will be established to specifically handle environmental policies, which is a reflection of the Green Party's pledge to create a climate minister position.

Regarding the ban on internal combustion engine vehicle sales, the Green Party made a concession. The coalition agreed to halt sales of internal combustion engine vehicles by 2035, in line with the European Union (EU) Commission's proposal. The Green Party had wanted to advance the ban date.

The current cabinet lineup was also revealed. Olaf Scholz, the current Finance Minister who led the Social Democratic Party to victory in the general election, will become Chancellor, and Christian Lindner, leader of the Free Democratic Party, will serve as Finance Minister. The Green Party co-leaders Annalena Baerbock and Robert Habeck will take the positions of Foreign Minister and Economy Minister, respectively.

This content was produced with the assistance of AI translation services.