German cabinet adopts draft law to strengthen mining regions during coal exit

Chancellor Angela Merkel’s cabinet on Wednesday adopted a draft law submitted by Germany's economy and energy minister Peter Altmaier aimed at strengthening coal regions following the country’s coal exit. The draft law would allocate up to 14 billion euros in grants to lignite mining regions affected by the elimination of coal-fired power generation until 2038. The grants are aimed at stimulating the economy in a wide range of areas, such as business-related infrastructure, improvement of public transport, broadband and mobility infrastructure and environmental protection and landscape management.

Additionally, the federal government would support the regions with up to 26 billion euros through further measures, such as the expansion of research and development programs and the establishment of federal institutions. The government also plans to speed up the expansion of transport infrastructure in the regions. The Federal Ministry for Economic Affairs and Energy (BMWi) will oversee a newly created high-level federal and state body that will play a central role in ensuring a rapid flow of projects. In addition, the BMWi’s new Zukunft Revier funding program will provide additional support in the regions. The draft law is available here.