Germany postpones decision to phase out coal until February

Germany has postponed until February a decision on how quickly Europe's largest economy should phase out coal-fired power plants, and whether the government should compensate utilities and help regions that may face job losses.

Since coal mines are the only truly domestic resource in a country dependent on energy imports, Germany faces the challenge of when to stop burning coal to meet its ambitious climate targets by 2030, as it also wants to be nuclear-free by 2022.

The German cabinet appointed a coal commission to find a compromise. But after another round of talks in Berlin on Monday, the leaders of the coal commission said that further negotiations are needed and the group intends to complete its work on February 1.

Thousands of job cuts, even if spread over many years, will wreak havoc on both eastern states. In addition, Brandenburg and Saxony will hold regional elections next year.

So far, the coalition parties have agreed to spend € 1.5 billion (US $ 1.7 billion) to help regions particularly affected by structural changes such as planned coal yields.

The commission will help provide federal funds to attract new industries to the regions, such as research and battery manufacturing.

Energy production from both lignite and imported bituminous coal accounts for 40 percent of Germany's total electricity production, making it difficult to get out of the coal zone, ensuring a reliable supply of industry and households.