Why Coal Power Is Merkel's Biggest Climate Challenge

The German government is deciding how quickly to close all the nation’s remaining coal-fired power plants, part of an effort to fulfill its pledges under the 2015 Paris Agreement on climate change. While environmentalists hope Europe’s biggest economy will put fossil fuels on a short leash, utilities say any quick changes will drive up electricity prices. As an ad-hoc coal commission reconvenes this month to plot the exit, interest groups ranging from Germany’s biggest coal-plant owner, RWE AG, to the World Wildlife Fund are pushing their views on how regulators treat an industry that pumps out a third of all emissions.

The current plan, according to Economy and Energy Minister Peter Altmaier, is to cut coal capacity in half by 2030 and shutter the industry completely by 2050. Environmentalists say a quicker phaseout is necessary to meet climate targets. Chancellor Angela Merkel has committed to closing coal plants but not yet set a date for when.