It took Germany longer than most. But after a marathon negotiating session, it joined the UK, Austria and other European nations in detailing its exit from coal. RWE, an electricity producer capitalised at €18.5bn, will receive €2.6bn to shutter mines. Shares jumped on the news.

This is a good outcome for RWE, and for smaller peer Leag, which will be compensated €1.6bn for the early closure of its mines in eastern Germany. Berlin is not known for munificence towards power producers. Usually shareholders have to foot the bill for policy decisions. When Germany abruptly ditched nuclear power after the Fukushima disaster in Japan in 2011, it put no compensation on the table. A subsequent court case paved the way for RWE and its ilk to try to recoup a few hundred million euros.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now