BERLIN, May 22 (Xinhua) -- The German cabinet adopted plans on Wednesday to provide 40 billion euros (44.7 billion U.S. dollars) of financial support to federal states undergoing the structural changes needed for Germany to achieve its planned phase out of coal by 2038.
According to the German government's plans, detailed in a key issues paper, the government is aiming to develop the existing mining areas in East Germany as well as the Rhine region "into energy regions of the future".
Support would be provided to "particularly affected sites" of hard coal-fired power plants as well as the former lignite mining area of Helmstedt in Lower Saxony, according to the German government.
"We are keeping our promise. The exit from coal must become an opportunity for the affected regions," said German Minister of Economics and Energy Peter Altmaier, who presented the cornerstones.
The German government "is ensuring clarity in the affected regions and creating long-term prospects with sustainable jobs for the local people," Altmaier stated.
"We are setting the course for the districts to develop into modern energy and economic regions. Now it is a matter of filling this concept with life together with the federal states, the municipalities and the local people," the German economics minister emphasized.
The prime ministers of the affected German federal states welcomed the paper adopted by the German cabinet in a joint statement.
"The federal government acknowledges its responsibility for the future prospects of those regions which will make major contributions to the achievement of national climate targets and the progress towards energy system transformation," said the German federal ministers.
"A central prerequisite" had been established that would enable the regions affected by the coal withdrawal "to develop sustainable prospects for growth and employment," according to the statement by the German federal prime ministers.
A positive assessment also came from the Institute for Economic Research (Ifo).
Most of the infrastructure projects were sensible, as was the establishment of research facilities in the lignite regions "because this makes a contribution to successful structural change," said Ifo researcher Joachim Ragnitz.
Nonetheless, "it would be desirable to concentrate the measures even more on the lignite areas in the narrower sense as in large parts of the selected regions, there will be no negative effects at all from the phase-out of coal," added Ragnitz.
According to the German government's key issues paper, an "investment law for coal regions" was being planned which would provide 14 billion euros to the affected federal states.
With a further 26 billion euros, the German government proposed to implement its own projects, for example in research and transport.
In order for rapid structural change to begin, an "immediate program" was planned which would be supported by the German government through up to 240 million euros in funding.
The German government will present a draft law implementing the energy policy recommendations of the coal commission in the second half of 2019.
An "adjustment allowance for older workers" in Germany's lignite industry" would also be proposed, according to the paper.
Around one third of Germany's electricity is still generated from coal-fired power plants and at the end of January, a government commission agreed that Germany should phase out coal by 2038 at the latest.
