Germany: Coal Compromise One of Many Proposals

German Economy Minister Sigmar Gabriel said on Tuesday a proposal to soften CO2 emissions cuts for coal-fired power plants was just one of many alternatives being considered to try and resolve a dispute with the coal industry over the levy.

The government has faced a backlash over its plans to slap a levy on the oldest and most polluting power plants, with unions saying the measure could put up to 100,000 jobs at risk.

Bowing to those concerns, the economy ministry proposed requiring coal plant operators to cut their emissions by 16 million tonnes by 2020, compared with a previous target of at least 22 million tonnes, according to a document seen by Reuters.

This would make older plants more profitable, the paper argued.

Gabriel said that the proposal was "just one of a whole range of deliberations on how to vary the climate levy", adding that these deliberations were not yet complete nor did they represent the final outcome.

The latest proposal has met a cool response from industry representatives. Germany's largest power producer RWE has rejected the measure because it did not address the original proposal's "structural and political deficits".

The original levy was aimed at forcing coal plant operators to slash their emissions as part of a national climate package to stop Germany from falling short of its target to cut greenhouse gases by 40 percent by 2020 compared to 1990 levels.
 

Reporting by Caroline Copley