Background information

The Coal Power Generation Termination Act regulates the end of coal-fired power generation in Germany. The last coal-fired power plant in Germany is scheduled to be shut down by 2038 at the latest, in North Rhine-Westphalia already by 2030. Ending electricity generation by burning coal is foreseen to significantly reduce Germany's share of CO2 emissions. The federal government supports structural change in the coal regions and workers affected by the closure of sites. The legislative act was preceded by discussions by the “Growth, Structural Change and Employment” Commission (“Coal Commission”), an advisory body to the federal government. In particular, it should draw up a plan for the gradual reduction and termination of coal-fired power generation in Germany and make concrete proposals for growth and employment in the affected regions. Many social actors from business associations, trade unions to environmental associations were represented in the Coal Commission. The commission adopted its final report almost unanimously on 26 January 2019.

Content of measure

The purpose of the law is to reduce and end the production of electrical energy through the use of coal in Germany in a socially acceptable, gradual and, if possible, consistent manner, in order to reduce emissions and thereby ensure a safe, inexpensive, efficient and climate-friendly supply of electricity to the general public to ensure. In order to achieve the purpose of the law, the remaining net electrical output of systems on the electricity market for generating electrical energy through the use of coal should be gradually reduced: in 2022 to 15 gigawatts of hard coal and 15 gigawatts of lignite, in 2030 to 8 gigawatts of hard coal and 9 gigawatts Brown coal and zero in 2038.

The law provides for an adjustment allowance for employees: in order to gradually reduce and end coal-fired power generation in a socially acceptable manner, federal budget funds can be used to grant adjustment allowances as a bridging aid to employees in brown coal plants and opencast mines as well as hard coal plants who are at least 58 years old and lose their jobs by 31 December 2043. The allowance can be granted for a maximum of five years until the entitlement to a pension due to old age from the statutory pension insurance.

The constant reduction and termination of the production of electrical energy through the use of coal in Germany is the reason and condition for the federal government's structural policy support for the regions according to the "Coal Regions Investment Act"

Use of measure

According to the German Pension Insurance, around 20,000 employees of brown coal and power plant companies are expected to be eligible.

Target groups

Workers	Businesses	Citizens
Older people in employment (aged 55+)	Does not apply to businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Employers' organisations Company / Companies Local / regional government Social insurance	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Agreed (outcome) incl. social partner initiative	Agreed (outcome) incl. social partner initiative
Form	Any other form of consultation, institutionalised (as stable working groups or committees) or informal	Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Sectoral or branch level

Involvement

The legislative act was preceded by negotiations in the “Growth, Structural Change and Employment” Commission (“Coal Commission”), an advisory body to the federal government. In particular, it drew up a plan for the gradual reduction and termination of coal-fired power generation in Germany and make concrete proposals for growth and employment in the affected regions. The social partners played a crucial role in the Commission. Other Commission members came from, for example, political bodies or environmental associations. The commission adopted its final report almost unanimously on 26 January 2019. The report was the foundation for the legislative acts regulating all aspects of the coal phase-out.

Views and reactions

According to the DGB, the recommendations of the Coal Commission are exemplary for the sustainable and social design of the transformation. However, after the implementation of the laws the law it was crucial to implement a socially fair transformation in practice: The collective bargaining agreement protection for employees in hard coal-fired power plants with a view to the specific decommissioning measure, for example. Or the appropriate design of the adjustment allowance so that all affected employees have the same rights. The Federation of German Industries (BDI; not a social partner but closely related to the Federal Association of German Employers' Associations, BDA) was not in favour of a faster coal phase-out, as the climate goals could be achieved through EU emissions trading. However, BDI and BDA it did not campaign vehemently against this, but emphasized that rising electricity prices and a threat to security of supply should be prevented.

Sectors and occupations

This case is not occupation-specific.

Sources

• 08 August 2020: Coal Power Generation Termination Ac (www.gesetze-im-internet.de)