Sensible decision: German coal subsidies to be phased out

by Jerome a Paris Mon Jan 29th, 2007 at 06:24:41 AM EST

This should have been done years ago, but I won't complain today:

Breakthrough Deal May Eliminate German Coal Subsidies
After extensive negotiations, the premiers of North Rhine-Westphalia and Saarland, two of Germany's particularly coal-rich regions, and representatives of the coal union and the mining conglomerate agreed Sunday on a plan to phase out German coal subsidies.
Though no official deadline was set, 2018 was mentioned as the year the last check would arrive.
Currently, some 34,000 miners extract 25 million tons of coal annually from eight mines in Germany. State and federal governments pay up to 2.5 billion euros ($3.2 billion) per year in coal subsidies.

Of course, it this only means that coal-fired power plants use imported coal from Australia, it's not so helpful, but at least that money can be put to better use in the renewable energy sector.

Sensible decision: German coal subsidies to be phased out | 18 comments (18 topical, 0 editorial, 0 hidden)

Re: Sensible decision: German coal subsidies to be (none / 0)

When I look around for the price of a ton of coal I find from $6 to $90. Assuming $100 as price of a ton of coal, it means that 25 millions tons is worth 2.5 billion USD per year. And you say 3.2 billion USD per year subsidy?

It's also 94000 USD per worker per year.

Do I miss something?

by Laurent GUERBY on Mon Jan 29th, 2007 at 07:41:18 AM EST

Yes (none / 0)

German coal is very expensive to produce, and its cost of production being double what its worth on the market is would not surprise me (thus the need for huge subsidies to cover the difference).

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Mon Jan 29th, 2007 at 07:56:40 AM EST
[ Parent ]

Re: Sensible decision: German coal subsidies to be (4.00 / 1)

Spain was subsidising coal to the tune of €43k per worker per year. See my old blog posts:

Coal-dark future: the EU subsidies to Spanish mining (Saturday, May 15 2004)
The decline and fall of Spanish mining (Sunday, May 16 2004)
What did you expect? (Monday, May 17 2004)

"It's the statue, man, The Statue."

by Carrie (migeru at eurotrib dot com) on Mon Jan 29th, 2007 at 08:17:55 AM EST
[ Parent ]

Re: Sensible decision: German coal subsidies to be (none / 0)

This just means the price of coal needs to be $228 per ton, and then German coal will be economical again. Just wait...

"It's the statue, man, The Statue."

by Carrie (migeru at eurotrib dot com) on Mon Jan 29th, 2007 at 10:50:48 AM EST
[ Parent ]

Re: Sensible decision: German coal subsidies to be (none / 0)

This should have happened 30 years ago, but better late than never.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Mon Jan 29th, 2007 at 07:54:15 AM EST

Re: Sensible decision: German coal subsidies to be (4.00 / 1)

It could not have happened until 2002 because of the European Coal and Steel Community Treaty being in force.

"It's the statue, man, The Statue."

by Carrie (migeru at eurotrib dot com) on Mon Jan 29th, 2007 at 08:40:34 AM EST
[ Parent ]

Re: Sensible decision: German coal subsidies to be (none / 0)

Laws schmaws.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Mon Jan 29th, 2007 at 08:42:56 AM EST
[ Parent ]

Re: Sensible decision: German coal subsidies to be (none / 0)

Well, actually, if they're giving themselves 11 years to phase out the subsidies, they should have done it in 1991.

"It's the statue, man, The Statue."

by Carrie (migeru at eurotrib dot com) on Mon Jan 29th, 2007 at 08:54:23 AM EST
[ Parent ]

Re: Sensible decision: German coal subsidies to be (none / 0)

WTF? The European Coal and Steel Community treaty expired in 2002 and in 2004 the EU opened an infraction file on Spain because subsidies had continued after 2002. And you're now telling me that Germany has been subsidising coal until now?

"It's the statue, man, The Statue."

by Carrie (migeru at eurotrib dot com) on Mon Jan 29th, 2007 at 08:14:08 AM EST

LOL (3.50 / 1)

This is where I chip in by saying that France and Germany are the engine of Europe...

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Mon Jan 29th, 2007 at 08:43:41 AM EST
[ Parent ]

Re: LOL (3.50 / 1)

Coal-powered engine until 2018, it appears.

"It's the statue, man, The Statue."

by Carrie (migeru at eurotrib dot com) on Mon Jan 29th, 2007 at 08:45:06 AM EST
[ Parent ]

Re: Sensible decision: German coal subsidies to be (3.50 / 1)

that money can be put to better use in the renewable energy sector

Dream on.

"It's the statue, man, The Statue."

by Carrie (migeru at eurotrib dot com) on Mon Jan 29th, 2007 at 08:50:01 AM EST

See the article (none / 1)

Germany cannot afford long-term subsidies for the coal industry, Economics Minister Michael Glos told public broadcaster ZDF on Monday.
"It's much better to take those economic resources and invest them in more modern, renewable energies," he added.

I don't know what will happen, but at least he siad it.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Mon Jan 29th, 2007 at 08:52:12 AM EST
[ Parent ]

Re: See the article (none / 1)

Like first-generation biofuels...

"It's the statue, man, The Statue."

by Carrie (migeru at eurotrib dot com) on Mon Jan 29th, 2007 at 08:52:54 AM EST
[ Parent ]

Re: See the article (none / 1)

Point taken, but they hardly replace coal...

by afew (afew(a in a circle)eurotrib_dot_com) on Mon Jan 29th, 2007 at 09:02:50 AM EST
[ Parent ]

Re: See the article (none / 1)

As a cash cow they do.

"It's the statue, man, The Statue."

by Carrie (migeru at eurotrib dot com) on Mon Jan 29th, 2007 at 10:51:53 AM EST
[ Parent ]

Re: See the article (4.00 / 1)