Thread by @RebekkaPopp

1/Today the 🇩🇪 parliament adopted the #coal exit law. It is an expensive deal that makes it difficult for future governments to adjust the pathway even though the economics of coal suggest a phase out will happen much earlier than 2038.

So, what to make of the law? 👇

2/The coal exit by 2038 (or 2035) is not in line with the #ParisAgreement and isolates 🇩🇪 among 🇪🇺 peers. As a member of @PastCoal and to regain credibility as a climate leader 🇩🇪 will need to work towards a phase out by 2030.

beyond-coal.eu/coal-exit-trac… @BeyondCoal

3/The phase out pathway deviates from the Coal Commission: The hard coal phase out starts early, while lignite will be phased out only towards the end.

Recently opened plant #Datteln4 contradicts the coal exit and @antonioguterres call to avoid new coal from 2020.

4/ Contracts between lignite companies & the government lock in €4.35bn compensations. It is unclear how the €4.35bn were calculated. @oekoinstitut shows that they should be €2bn lower. It is also not clear if they are in line with 🇪🇺 state aid rules.

oeko.de/aktuelles/2020…

5/ Negotiation of the contracts in parliament was postponed to Sept. @bundestag shouldn’t miss this opportunity to improve the contracts!

They should allow 1⃣ moving the coal exit forward and 2⃣ adjusting the compensations to reflect the true future market value of the plants.

6/ Hard coal plants are phased out through an auctioning system until Dec 2027 (extension possible) and afterwards through a regulated pathway. Compensation ceilings in the auctioning system got a last-minute boost – but no accelerated phase out pathway is planned in exchange.

7/ The exit law was meant to give regions planning security. As it is not flexible enough to be adjusted to new realities it will miss exactly this aim. These realities will hit 🇩🇪 coal and make an earlier phase out likely.

See also this @e3g analysis: e3g.org/publications/z…