A European Commission proposal to phase out subsidies for hard coal by 2014 has run into opposition from leading politicians in Germany's largest state, in a prelude to what may prove a fierce battle in the Council of Ministers. Hannelore Kraft, the minister-president of North Rhine-Westphalia, has described the proposal as “unacceptable”, while a leading Green politician – Johannes Remmel, the state's environment minister – has called the plan “unworkable”. The federal government has yet to comment, but the views of the leaders of North Rhine-Westphalia, Germany's largest state and home to the highest number of hard-coal mines in the country, carry substantial weight. The Commission agreed its proposal on Tuesday (20 July) after a debate that overran by an hour, reflecting sharp differences within the college of commissioners. An early draft of the proposal from Joaquín Almunia, the European commissioner for competition, suggested that state aid be allowed until 2023. But he faced strong opposition from other commissioners, some of whom wanted aid to end as soon as 2012. Connie Hedegaard, the European commissioner for climate action, and Janez Potoc?nik, the environment commissioner, believed that subsidies should be withdrawn relatively quickly to ensure that the EU's ambition to play a leadership role in combating climate change is not undermined. Under the Commission's proposal, hard-coal mines would face a choice of coming off subsidies or agreeing to closure, with subsidies made available only to ensure what a Commission spokeswoman described as “the orderly closure”. An end to subsidies threatens large-scale job losses in an industry that directly employs 42,000 people across the EU. The Commission's proposal can be blocked if opposed by member states with a combined total of 91 votes. A decision is required this year, as existing rules on state aid for hard-coal, or anthracite, mining expire on 31 December. Collectively, countries with large hard-coal industries that may oppose the proposal have 121 votes. The three big hard-coal industries are found in Germany (29 votes), Poland (27) and Spain (27). Another three significant producers – Romania, the Czech Republic and Hungary – have a combined 38 votes. Spain, which currently gives around €1 billion a year to anthracite mines, has no phase-out plans. Germany, which relies on coal-fired plants to provide 40% of its electricity, has previously said that it intends to end subsidies by 2018. The position of Poland may well prove crucial. Poland accounts for more than half of the EU's hard-coal production. Its hard-coal industry is competitive and it would be able to export more coal if, for example, Germany had to end its support for its mines. No state aid for soft coal, or lignite, is allowed in the EU. Environmental campaign groups have welcomed the Commission's decision and called on member states to back the proposal. “As the urgency and need for the EU to invest in a greener economy becomes more compelling, there is little justification in continuing subsidies on coal,” said John Hontelez, the secretary-general of the European Environmental Bureau. ? A committee of member states' experts agreed on 15 July on rules governing the auctioning of pollution permits under the EU's emissions trading system. The committee also approved rules used in national emissions trading schemes in the EU.
Coal subsidy proposals face strong opposition
Subsidy or closure
Thursday, 22 July 2010
ENERGY Fossil fuel
22.07.2010 / 05:19 CET
http://www.europeanvoice.com/article/imported/coal-subsidy-proposals-face-strong-opposition/68557.aspx
German politicians criticise hard-coal plans as differences of opinion emerge within Commission.
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