Germany Faces Challenges in Meeting 2030 Coal-Exit Goal Amid Rising Fossil Fuel Subsidies

As Germany struggles to phase out coal by 2030, the UK's record subsidies for fossil fuel power plants and warnings of social unrest over climate measures highlight the complex dynamics of Europe's energy transition.

• Germany's accelerated coal phase-out by 2030 is challenged by the need to build significant capacity in hydrogen-ready natural gas power plants.
• UK's capacity auction for power plants has led to record subsidies, with a significant portion awarded to gas plants, amid efforts to ensure backup power.
• Warnings from Germany's Environment Agency highlight the risk of social unrest due to rising carbon prices affecting low-income households.
• The German government's plan to finance gas-fired plants as part of the coal exit strategy faces scrutiny over its adequacy to replace coal power by 2030.
• Europe's largest economy grapples with balancing climate commitments and social equity, as the transition imposes financial burdens on consumers.

3 Articles

Financial Post Financial Post Financial Post