Coal Exit: First Payments to Leag Imminent - Germany's Coal Phase-out Act Amended to Facilitate Leag's €1.75B Compensation
The German government is set to amend the Coal Phase-out Act to facilitate its technical implementation. A draft law has been passed, paving the way for the first payment to Leag, which is 'imminent' following the European Commission's review process.
Leag, the company responsible for the early exit from coal power plants, will receive an initial compensation payment of approximately €377 million. This is to cover advance payments already made. From 2025 to 2029, Leag will receive an annual rate of around €92 million for rehabilitation costs. Additionally, the company will be reimbursed for additional social costs incurred due to the premature phase-out of coal.
The total compensation package could reach up to €1.75 billion, subject to approval. The Federal Ministry of Economics anticipates the European Commission's approval for these payments in the near future. However, for Leag to receive funds this year, the law changes must come into effect this year.
The amendment of the Coal Phase-out Act is crucial for Leag to receive its compensation. The first payment of around €377 million is expected soon after the necessary legislative adjustments. The total compensation package, if approved, could significantly support Leag's transition away from coal power.
Read also:
- Cyprus, Kuwait Strengthen Strategic Partnership with Upcoming Ministerial Meeting
- BUND Protests Weser Deepening and Soybean Imports in Brake
- Philippines Demands Justice for Dafnie Nacalaban, Murdered Migrant Worker in Kuwait
- Trump administration faces lawsuit by Denmark's Ørsted over halted wind farm project
