Economists at the German Institute for Economic Research are calling for old coal-burning facilities to be shut down as soon as possible, indicating that it’s the only way Germany will reach its climate target for 2020.
Shutting down old coal plants would create a moderate increase in energy market prices. However, this shift is likely to make power generated from natural gas profitable again, according to a study released on Wednesday (19 November).
Research was conducted by the DIW Berlin, on behalf of the Heinrich-Böll Foundation and the European Climate Foundation.
“The energy sector should contribute more toward reaching the short- and medium-term climate targets by replacing CO2-intensive, inefficient coal power plants with more efficient gas-fired power plants. Because this helps the climate and energy markets simultaneously, it even offers a double dividend,” explained Claudia Kemfert, director of the department for Energy, Transportation, Environment at the DIW Berlin.