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Kretschmer Seeks CO2 Price Pause for Lignite as Greens Cite EU Law

He argues domestic coal can bridge supply risks from costly imported LNG.

Overview

  • Saxony’s minister-president proposes suspending the CO2 levy on domestic lignite to keep it competitive, while reaffirming the 2038 coal exit.
  • He contends LNG has a similar climate impact once transport and methane leakage are counted and warns against heavy reliance on U.S. supplies.
  • Green party co-leader Felix Banaszak rejects the idea, saying scrapping coal’s emissions trading would defy EU rules and expose Germany to penalties.
  • Some CDU figures, including deputy caucus chair Sepp Müller, support debating extended lignite use, citing missing gas-plant capacity and LNG dependence.
  • Context to the push includes storage at about 32% with forecasts of less than 14% by late March in normal weather, federal outreach for LNG in Gulf states, and Kretschmer’s view that Russian gas could be reconsidered only after the Ukraine war ends.