Germany: emission permit cancellation and coal phase-out must go hand in hand

The German coal commission's plan to be coal-free by 2038 aims to avoid up to 1.8GtCO2e of emissions compared to a business-as-usual scenario. However, the author contends that the EU Emissions Trading System (EU ETS) alone is insufficient to force a phase-out and warns that closing plants without cancelling permits allows other polluters to use them, known as the 'waterbed effect'. The document advocates for using public funds to support workers and communities in a Just Transition rather than compensating private shareholders of utilities like RWE.

• The German coal commission's report sets a target for the country to be coal-free by 2038, with a plan to remove approximately 12.5GW of capacity from the grid over the next four years and an additional 13GW by 2030. This strategy is expected to avoid up to 1.8GtCO2e of emissions relative to a Business As Usual scenario, although it is noted that this does not place Germany on a "below 2C" pathway.
• The EU Emissions Trading System (EU ETS) is considered an insufficient tool on its own to drive the coal phase-out due to volatile energy market parameters and the risk of carbon price drops. To prevent the 'waterbed effect'—where permits from closed plants are used by other plants or countries—the author supports the Coal Commission's advice that the German government should cancel ETS permits as coal plants close.
• A Just Transition for coal-reliant communities and workers is necessary, with reports suggesting the German government may allocate €40 billion over 20 years for this purpose. The document argues that these public funds should be used for re-skilling and community support rather than compensating private investors or shareholders of utilities such as RWE who invested in coal.

APA

Marcos, M. V. (2019). Germany: emission permit cancellation and coal phase-out must go hand in hand. Carbon Market Watch. https://carbonmarketwatch.org/2019/02/05/germany-emission-permit-cancellation-and-coal-phase-out-must-go-hand-in-hand/

Chicago

Marcos, Miriam Vicente. Germany: emission permit cancellation and coal phase-out must go hand in hand. Carbon Market Watch, 2019. https://carbonmarketwatch.org/2019/02/05/germany-emission-permit-cancellation-and-coal-phase-out-must-go-hand-in-hand/.

Wikipedia

{{cite press release |last1=Marcos |first1=Miriam Vicente |title=Germany: emission permit cancellation and coal phase-out must go hand in hand |publisher=Carbon Market Watch |date=5 February 2019 |url=https://carbonmarketwatch.org/2019/02/05/germany-emission-permit-cancellation-and-coal-phase-out-must-go-hand-in-hand/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{marcos2019germany, author = {Marcos, Miriam Vicente}, title = {{Germany: emission permit cancellation and coal phase-out must go hand in hand}}, publisher = {Carbon Market Watch}, year = {2019}, month = feb, url = {https://carbonmarketwatch.org/2019/02/05/germany-emission-permit-cancellation-and-coal-phase-out-must-go-hand-in-hand/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }