Lignite in the Czech Republic and Germany: controversies and prospects. OSW Commentary Number 386 31.03.2021.

Debiec, Krysztof and Kędzierski, Michał (2021) Lignite in the Czech Republic and Germany: controversies and prospects. OSW Commentary Number 386 31.03.2021. [Policy Paper]

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Abstract

Lignite still plays an important role in the Czech and German power industries, remaining one of their key sources of electricity. These countries, together with Poland, are the largest producers and consumers of this fuel in the EU. The share of lignite in both countries’ energy mix is trending downward under the influence of the EU’s climate policy ambitions, particularly the rising costs of CO2 emission allowances. The lignite industry in the Czech Republic and Germany is also linked to capital, with some mines in eastern Germany being owned by Czech corporations. The activity of lignite-fired mines, power plants and heating plants in both countries has caused a number of controversies, including environmental ones. Local communities affected by the negative impact of the mines’ operation have engaged in protests, and the significance of environmental issues in national politics is also rising. Both Berlin and Prague are planning to stop mining and burning lignite. Germany has already set a coal exit date of 2038, and the debate in the Czech Republic is approaching a conclusion of setting the same date, or even five years earlier. The decision to give up using this fuel is posing socio-economic challenges for the coal regions, which face numerous structural problems.

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