A recent report published this week by the think tank Green Budget Germany (FÖS) revealed that coal companies continued to receive massive subsidies from the German government throughout 2022 despite climate pledges.

According to the analysis, roughly €1,2 billion were disbursed directly from the state budget to support lignite mining and power generation. Furthermore, lignite companies also received other financial benefits worth around €500 million under different forms  such as “costs that are passed on to the grid fees by the Federal Network Agency and have to be paid by all electricity customers.”

 

The findings come as a surprise considering that, a year ago, while preparing for winter with insufficient gas supplies, the current government reaffirmed the country’s commitment to phase out coal in power generation ideally by 2030 and by 2038 at the very latest.

 

The state’s decision to continue to support lignite companies was criticized by Green Planet Energy, the most important provider of renewable electricity in Germany, for creating an unfair advantage.

 

“Other project planners have to put in a lot of effort and shoulder considerable costs to get to suitable areas… (lignite) corporations have a considerable competitive advantage that could also cement their market power in electricity generation” warned Green Planet Energy board member Nils Müller. “A consistent phase-out of coal must also mean ending the general public’s support for coal as far as possible,” he added.