Accelerating Structural Change in Former Coal Regions: A Green Transition Strategy
Key Ideas
  • The German federal government aims to enhance state aid programs in former coal regions to expedite structural transformation, with a focus on promoting renewable energy industries.
  • The government plans to maintain the coal phase-out deadline of 2038 in eastern German mining regions, while enhancing support for market-driven early phase-outs, renewable energy expansion, and hydrogen conversion of gas-fired plants.
  • Financial aid will now be directed towards company relocations and establishment of renewable energy production capacities, aiming to boost the local economy, reduce fossil fuel dependence, and accelerate industrial transition.
  • Flexibility in claim periods and expanding infrastructure projects are part of the strategy to utilize funds effectively, stimulate innovation, and facilitate a smoother transition for the affected regions.
The German federal government, led by Minister of Economics and Climate Protection Robert Habeck, is intensifying efforts to support the structural transformation in former coal regions. At the East German Economic Forum in Bad Saarow, Brandenburg, Habeck announced plans to expand state aid programs to facilitate the shift towards renewable energy. While affirming the 2038 coal phase-out deadline in eastern German coal-mining areas, the government acknowledges the potential for earlier phase-outs driven by market forces and policy interventions. The focus is on making coal-fired power generation financially unattractive through emissions trading reform and promoting renewable energy sources like hydrogen and gas-fired plants. To accelerate the transition, the government will now allow direct investments in company relocations and the establishment of facilities for renewable energy equipment production. The initiative aims to diversify the local economy, reduce reliance on fossil fuels, and drive innovation in transformation technologies. Moreover, the strategy includes enhancing flexibility in claim periods for financial aid and expanding infrastructure projects to utilize funds efficiently. By aligning with the 'STARK' program and initiating rail projects in mining areas, the government seeks to improve transport infrastructure and facilitate economic development. The overall sentiment towards these measures is positive, emphasizing the importance of preparing for a potential early phase-out and ensuring a smooth transition for affected regions.
ADVANCEH2

Our vision is to be the world's leading online platform for advancing the use of hydrogen as a critical piece needed to deliver net-zero initiatives and the promise of a clean H2 energy future.

© 2025 AdvanceH2, LLC. All rights reserved.