Germany’s closure of hard coal mines in the Ruhr and Saar regions

As economic conditions became increasingly challenging for Germany’s hard coal sector, the federal government in the 1990s pursued a tailored engagement strategy with local governments, employers and trade unions that led to an orderly closure of coal mines in the traditional coal-producing regions in western Germany. Since the late-1950s, international competition placed increasing economic pressure on the industry, leading to significant job losses. The government intervened to develop economic restructuring plans for the regions. From the late 1980s, the government pursued a regionalised structural policy that provided opportunities and inputs from local stakeholders. Following a 2007 decision to end all hard coal subsidies in 2018, an agreement was signed between state and federal governments, trade unions and coal companies to ensure a just transition away from coal in the area and a socially acceptable adjustment process. The implementation of social compatibility took place through measures such as voluntary wage reductions, early retirement, relocation of some workers, retraining, redeployment with decent pay, and large public investments to underpin economic diversification. The last coal mine in Germany closed in 2018.

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