Germany is still considering imposing a levy on its ageing coal power plants, countering reports that the divisive plan would be abandoned, Reuters reported on Wednesday, citing an economy ministry spokesman.
German media, citing industry sources, had reported that Economy Minister Sigmar Gabriel decided to shelve the measure after a number of utilities offered to voluntarily shut some of their coal-fired plants.
The spokesman told Reuters that “nothing is off the table”, and that a decision was expected before the July start of the summer break.
Germany has proposed forcing its oldest coal plants to buy extra EUAs for breaching fixed emissions limits, a plan that could shift more energy generation to gas plants and renewable sources while helping to mop up excess allowance supply in the EU ETS.
An outline of the initial proposal can be seen here.
The plan had originally aimed to cut the country’s emissions by 22 million tonnes by 2020, but it faces headwinds from members of the ruling CDU-CSU party, the senior coalition partner to Gabriel’s Socialists.
As a result, Gabriel last month said the proposal’s goal could be weakened to shoot for cuts of 16 million tonnes.
Germany has pledged to cut its emissions by 40% below 1990 levels by 2020, and the government drafted the plan to help the country meet that target.