An historical case study on previous coal transitions in GERMANY

The document examines two distinct coal transitions in Germany: the economically driven, subsidy-supported decline of hard coal in the Ruhr area from 1958 to 2018, and the politically driven reduction of lignite in East Germany following the 1990 reunification. It evaluates the effectiveness of various structural policies, including investment support, retraining programs, and the creation of universities and infrastructure, while highlighting the risks of 'lock-in' caused by powerful industry networks. The study concludes that a 'just transition' requires multi-level governance, stakeholder participation, and a comprehensive approach that addresses not only employment and the energy system but also soft location factors and environmental renaturation.

• The transition away from hard coal in the Ruhr area was significantly delayed by a 'lock-in' effect, where a powerful network of mining companies, unions, and politicians resisted structural change and prioritized the modernization of old industries over new economic possibilities.
• Hard coal production in Germany was sustained for over 60 years through massive state subsidies, totaling between €289 and €331 billion from 1950 to 2008, which eventually ended in 2018 due to EU competition laws.
• The reduction of lignite in East Germany after the 1990 reunification was rapid and disruptive, with over 100,000 employees losing their jobs between 1989 and 1994 due to low labor productivity compared to West German standards.
• Economic reorientation in the Ruhr area was initially hindered by 'ground lock' (Bodensperre), where mining companies refused to sell land to new competitors to avoid losing qualified workers.
• The establishment of universities and research institutions was a critical factor in transforming the Ruhr area from a mining center into a 'knowledge society', with the number of universities growing from zero in 1965 to 22 by 2014.
• To manage the 'eternity costs' (Ewigkeitskosten) of hard coal mining—specifically long-term water management—a foundation was created using the assets of Evonik AG, though this remains a financial risk if the company's liability declines.
• Structural policy in Germany shifted around the turn of the millennium toward a growth-oriented 'cluster policy' influenced by the EU's European Regional Development Fund (ERDF), focusing on 'lead markets' like health and resource efficiency.
• A 'just transition' requires addressing 'soft location factors' such as culture, leisure, and environmental health to reverse migration trends and attract younger populations to former mining regions.
• The German experience suggests that a successful coal phase-out requires a multi-level polycentric structural policy mix involving city, regional, national, and supranational governments.

APA

Herpich, P., Brauers, H., & Oei, P.-Y. (2018). An historical case study on previous coal transitions in GERMANY. Climate Strategies. https://climatestrategies.org/wp-content/uploads/2019/09/Historical-Case-Coal-Germany_2018_FINAL.pdf

Chicago

Herpich, Philipp, Hanna Brauers, and Pao-Yu Oei. An historical case study on previous coal transitions in GERMANY. Climate Strategies, 2018. https://climatestrategies.org/wp-content/uploads/2019/09/Historical-Case-Coal-Germany_2018_FINAL.pdf.

Wikipedia

{{cite report |last1=Herpich |first1=Philipp |last2=Brauers |first2=Hanna |last3=Oei |first3=Pao-Yu |title=An historical case study on previous coal transitions in GERMANY |publisher=Climate Strategies |date=2018 |url=https://climatestrategies.org/wp-content/uploads/2019/09/Historical-Case-Coal-Germany_2018_FINAL.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{herpich2018historical, author = {Herpich, Philipp and Brauers, Hanna and Oei, Pao-Yu}, title = {{An historical case study on previous coal transitions in GERMANY}}, institution = {Climate Strategies}, year = {2018}, url = {https://climatestrategies.org/wp-content/uploads/2019/09/Historical-Case-Coal-Germany_2018_FINAL.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }