Transformation Of Lignite Mining Regions: The German Strategy - SME Annual Meeting 2022

In 2018, the German Federal government decided to phase-out the energy production using coal-fired power plants and to terminate lignite mining completely by 2038 at the latest. This decision will impact approximately 60,000 jobs. It will have an enormous impact on the socioeconomic development especially in all German lignite mining regions. To avoid economic and political friction, it is of utmost importance to achieve a sustainable transition towards a post-mining era and to offer residents in the mining districts perspectives for a good future that include adequate job opportunities. In this context, the German government is providing massive structural aids early on. As previous closure experiences from the German hard coal mining industry have shown, it takes at least a generation to overcome the effects of a strategic closing decision of this magnitude. Therefore, the planned closure process appears to be a long time at first glance. In fact, however, it is not.