G7 Nations Plan Coal Phase-Out by 2035 – Minimal Impact for Germany

During their recent meeting in Italy, which currently holds the presidency of the G7 group of states, representatives of the leading western industrial nations reached a significant agreement on climate protection. The use of coal for power generation, unless employing Carbon Capture and Storage (CCS) technologies, is to be phased out by 2035 at the latest. This decision, emerging from the recently released final communique of the summit, marks an ambitious step by the G7 countries – Germany, France, the United Kingdom, Japan, Canada, the USA, and the European Union – towards achieving climate neutrality. However, according to Federal Minister for Economic Affairs Robert Habeck, the G7 decision has no immediate consequences for Germany. The Green Party politician sees Germany's coal phase-out already well underway through the European CO2 emissions trading system, which goes beyond national legislation. Germany is already focusing on an early exit scenario by 2030, as set forth in the coalition agreement of the government led by the so-called traffic light coalition. This goal stands in contrast to the legal deadline of 2038, yet for North Rhine-Westphalia, an exit by 2030 is already in place. In Eastern Germany, where the coal economy is still deeply rooted, earlier exit dates, however, meet resistance. The Minister Presidents of Saxony and Brandenburg, Michael Kretschmer and Dietmar Woidke, emphasize the importance of legal and economic framework conditions and called for dialogue to potentially find a new consensus. The reactions to the G7 decision highlight the complexity of the transition, especially in structurally weak regions heavily dependent on lignite coal. Despite national challenges, Habeck welcomes the international initiative and emphasizes the significance of Japan and the USA moving towards climate neutrality by 2050. Germany itself aims to achieve this by 2045. Environmental organizations like Greenpeace criticized the agreement as inadequate, while the Federal Association of Energy and Water Industries underscored the urgency of further investments in the expansion of renewable energies and grid infrastructures.