Germany’s “Coal Commission": Guiding an Inclusive Coal Phase-Out

This case study examines the work of Germany's Commission on Growth, Structural Change and Employment (the "Coal Commission"), established in 2018 to create a consensus-based plan for phasing out coal-fired power generation while ensuring a just transition for workers and affected regions.

• The Coal Commission developed a plan to end coal-fired power generation by 2038, aiming to reduce coal capacity to 30 GW by 2022 and 17 GW by 2030. This transition includes targets to increase the share of renewable electricity generation to 65% of gross consumption by 2030 and 80% by 2050.
• The transition strategy includes comprehensive financial support for workers and regions, with initial cost estimates for recommended measures ranging between 69 billion and 93 billion euros. This includes 5 billion to 7 billion euros for social and labor measures—such as early retirement for employees aged 58 and older—and 16 billion to 32 billion euros to prevent the costs of the phase-out from increasing electricity prices for consumers.
• The German federal cabinet passed the Structural Reinforcement Bill in August 2019, allocating 40 billion euros through 2038 to support coal regions. Of this, 26 billion euros are provided through federal programs and 14 billion euros are designated for specific projects in Saxony, Saxony-Anhalt, Brandenburg, and North Rhine-Westphalia to diversify regional economies through investments in infrastructure, science, innovation, and clean energy.
• The government implemented a compensation system for power plant operators to close units, budgeting 4.35 billion euros distributed via auctions. In the first auction in September 2020, plants with 4.7 GW of capacity won 317 million euros in compensation. However, specific financial concessions to operators—such as 2.6 billion euros for RWE in Rhineland and 1.75 billion euros for LEAG in Lusatia—have been criticized by NGOs as inconsistent with climate goals.
• While the commission was praised for its inclusive multi-stakeholder approach and clear mandate, it faced criticism from groups like Greenpeace, Oxfam, and the Fridays for Future movement. Critics argue the 2038 timeline is too slow to meet Paris Agreement temperature goals and that the process lacked sufficient youth representation and local-level dialogue.

APA

World Resources Institute (2021). Germany’s “Coal Commission": Guiding an Inclusive Coal Phase-Out. https://www.wri.org/snapshots/germanys-coal-commission-guiding-inclusive-coal-phase-out

Chicago

World Resources Institute. Germany’s “Coal Commission": Guiding an Inclusive Coal Phase-Out. 2021. https://www.wri.org/snapshots/germanys-coal-commission-guiding-inclusive-coal-phase-out.

Wikipedia

{{cite report |author=World Resources Institute |title=Germany’s “Coal Commission": Guiding an Inclusive Coal Phase-Out |date=1 April 2021 |url=https://www.wri.org/snapshots/germanys-coal-commission-guiding-inclusive-coal-phase-out |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2021germanys, author = {{World Resources Institute}}, title = {{Germany’s “Coal Commission": Guiding an Inclusive Coal Phase-Out}}, institution = {World Resources Institute}, year = {2021}, month = apr, url = {https://www.wri.org/snapshots/germanys-coal-commission-guiding-inclusive-coal-phase-out}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }