Germany will decide on alternative to coal levy on 1 July 2015

The German Ministry of Economy will decide on 1 July 2015 between the proposed coal levy and an alternative solution. In December 2014, the government had approved a climate package aiming at forcing coal-fired power plant operators to reduce their CO₂ emissions by at least 22 Mt by 2020, which would correspond to the closure of eight coal-fired power plants. The opposition from the industry prompted the government to reduce the CO₂ emission cut to 16 Mt. Trade union IG BCE has proposed to gradually shut down 2.7 GW of coal-fired power plants to limit CO₂ emissions and to replace them with gas-fired CHP power plants.

Despite its ambitious energy transition policy (Energiewende) and a rising share of renewable power generation, Germany's CO₂ emissions grew in 2012 and 2013 (+5% between 2011 and 2013) and the country could miss its 2020 emission reduction target (-40% reduction by 2020 compared to 1990 levels), which incited the government to introduce a large reduction target in December 2014. German CO₂ emissions declined by 6% in 2014 but Germany remains the largest emitter in the European Union.