Germany Urges China to Find Alternative to Coal

German vice-chancellor and Economy Minister Robert Habeck during his visit to carmaker BMW's research and development center in Shanghai, China, on June 23. (Reuters) 
German vice-chancellor and Economy Minister Robert Habeck during his visit to carmaker BMW's research and development center in Shanghai, China, on June 23. (Reuters) 
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Germany Urges China to Find Alternative to Coal

German vice-chancellor and Economy Minister Robert Habeck during his visit to carmaker BMW's research and development center in Shanghai, China, on June 23. (Reuters) 
German vice-chancellor and Economy Minister Robert Habeck during his visit to carmaker BMW's research and development center in Shanghai, China, on June 23. (Reuters) 

German Economy Minister Robert Habeck said on Sunday that two Chinese officials he met in Beijing told him that China was expanding coal production for security reasons.

The Minister then said Beijing must find a safe alternative to coal.

“China is indispensable to achieving global climate goals and must find a safe alternative to coal, which accounted for nearly 60% of China's electricity supply in 2023,” Habeck said at the end of a four-day visit to East Asia.

Officials told Habeck that China was expanding coal production for security reasons, the minister told reporters in the southern city of Hangzhou, the day after meeting Chinese officials in Beijing.

“China also imports large amounts of gas and oil and China has already seen what has happened in Europe and Germany in the last two years,” he added, referring to the energy crisis triggered by Russia's full-scale invasion of Ukraine.

He said cooperation with China must be strengthened, adding: “Without China it would not be possible to meet the climate targets globally.”

“You don't have to teach them that CO2 emissions are bad for the climate. They've got that,” Habeck said, adding that it should be possible to achieve the same level of security with fewer coal-fired power plants.

Later, Habeck told students at the university of Zhejiang that the difficulty lay in integrating variable forms of energy such as wind and solar into a system built to work on more predictable fuels, adding: “That is basically my work.”

He said that doubling capacities was "the old way" of doing it, but not the most efficient.

Habeck said extension of the power grid and use of batteries to store energy could reduce the number of traditionally fueled power plants needed to meet China's needs, adding that economic growth and climate action were not opposites.

“Transforming the economy to a climate-neutral one is not only good for the climate but creates new opportunities for wealth and growth,” he added.

Other issues seem to overshadow curbing global warming at the moment, but it is a key challenge, so strengthening cooperation with China in this area is necessary, the minister said.

During Habeck’s visit to China on June 22, Chinese and EU officials said they agreed to start talks on the proposed imposition of tariffs on Chinese-made electric vehicles being imported into the European market.



German Coalition Reaches Breakthrough on 2025 Budget, Financial Plan

A German flag blows in the wind in front of a stack of containers at the harbour in Hamburg, Germany, February 24, 2022. REUTERS/Fabian Bimmer/File Photo Purchase Licensing Rights
A German flag blows in the wind in front of a stack of containers at the harbour in Hamburg, Germany, February 24, 2022. REUTERS/Fabian Bimmer/File Photo Purchase Licensing Rights
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German Coalition Reaches Breakthrough on 2025 Budget, Financial Plan

A German flag blows in the wind in front of a stack of containers at the harbour in Hamburg, Germany, February 24, 2022. REUTERS/Fabian Bimmer/File Photo Purchase Licensing Rights
A German flag blows in the wind in front of a stack of containers at the harbour in Hamburg, Germany, February 24, 2022. REUTERS/Fabian Bimmer/File Photo Purchase Licensing Rights

The leaders of Germany's three-party coalition on Friday achieved a breakthrough in negotiations on the national budget for 2025, dpa has learnt from government sources.

The coalition leaders have also reached a preliminary deal on a financial plan to secure additional economic growth of more than 0.5% - worth an estimated €26 million ($28 million) - in the coming year.

Sources told dpa that the coalition plans to stick with strict rules against budget deficits, known as the debt brake, banking on a significant increase in economic output to overcome shortfalls in government spending.

The breakthrough comes after weeks of negotiations between German Chancellor Olaf Scholz of the Social Democratic Party (SPD), Vice Chancellor and Economy Minister Robert Habeck of the Greens and Finance Minister Christian Lindner of the pro-business Free Democratic Party (FDP).

The key sticking point has been a €10 billion deficit in government expenditure, with Lindner's FDP refusing to sideline the debt brake to allow for additional borrowing and investments, and the SPD ruling out any cuts to welfare spending.

Sources told dpa that the new deal includes a supplementary budget totalling €11 billion to overcome lower-than-expected tax revenues and higher government spending.