Germany’s long-standing commitment to phase out coal is facing renewed scrutiny as rising global energy prices and concerns over electricity security prompt fresh debate over the country’s transition away from fossil fuels. While Berlin remains officially committed to ending coal-fired power generation, recent developments have raised questions over whether the timeline could be extended.
Germany, Europe’s largest coal consumer for electricity generation and the world’s fourth-largest after China, India and the United States, has pledged to eliminate coal by 2038. The country had advanced the deadline for lignite—the most polluting form of coal—to 2030 as part of its climate strategy. Coal currently contributes around one-fifth of Germany’s electricity production, while renewable sources, including wind and solar, supplied nearly 59% of the country’s electricity last year.
To support renewable energy during periods of low generation, particularly in winter, Germany has planned to rely more heavily on natural gas, which emits significantly less carbon dioxide than coal. However, recent spikes in global gas prices following tensions in West Asia have prompted several countries to reconsider coal as a more affordable energy source. Japan has eased restrictions on coal-fired plants, Italy has postponed the closure of its remaining coal stations, and India has delayed maintenance shutdowns at coal plants to ensure adequate supply.
The debate has also intensified in Germany after Chancellor Friedrich Merz questioned whether existing phase-out plans remain practical, stressing the need to guarantee reliable electricity for industry. Germany possesses abundant domestic lignite reserves, making it largely self-sufficient in coal, whereas it imports the vast majority of its natural gas. The closure of the country’s last nuclear power plants in 2023 has further limited alternative options.
Energy company LEAG, one of Germany’s largest lignite producers, has welcomed discussions on maintaining coal capacity for longer, arguing that domestic coal has already played a vital role in stabilising energy supplies after Russian gas imports were disrupted in 2022. Environmental experts, however, contend that expanding renewable energy remains the most sustainable solution and caution against increased dependence on coal.
Industrial groups have urged the government to prioritise affordable and reliable energy, arguing that businesses require long-term certainty before making major investments. Although there is little political support for abandoning the coal phase-out entirely, some policymakers have proposed allowing a limited number of imported hard coal power plants to operate more regularly to strengthen grid stability. Operators claim these facilities could supply electricity to millions of households if restrictions were eased.
The issue has exposed differences within Germany’s governing coalition. While members of the centre-right CDU support greater flexibility in coal use to safeguard energy affordability, the centre-left SPD has warned that relaxing coal policies could undermine the country’s clean energy transition and prolong dependence on fossil fuels.
The German government is expected to decide later this year whether the 2030 deadline for ending lignite-fired power generation should remain unchanged or whether some coal capacity should be retained temporarily as a strategic reserve. A statutory review of the country’s coal phase-out policy, scheduled for publication in August, will assess its impact on energy security, electricity prices and overall supply, with growing expectations that it may recommend slowing rather than accelerating Germany’s coal exit.
