GERMANY Law and Practice Contributed by: Stefan Altenschmidt, Pauline Müller and Ina Schwanke, Luther Rechtsanwaltsgesellschaft mbH
currently under way, and production is expected to increase. Carbon Net Zero Owing to Germany’s goal of becoming carbon-neutral by 2045, climate-neutral production is also an impor - tant issue in mining. However, mining is also essential for achieving climate targets as it provides the impor - tant raw materials needed for the energy transition. The government directly funds the low-emission extraction of natural resources and indirectly pro - motes this through economic instruments such as emissions trading. Recognising that some emissions are unavoidable, Germany will increasingly promote CCS and CCU technologies in the future. As part of Germany’s net zero legislation, the Coal Exit Act is designed to end the use of coal for energy production by 2038. This will also bring an end to coal mining in Germany. Economic Policy In both European and German politics, the focus on the competitiveness of industry has increased in recent years. This political approach is associated with numerous relief measures for companies. The European Commission has presented a roadmap for strengthening Europe’s competitiveness with its Competitiveness Compass. The aim is to boost the competitiveness of the European economy by: • reducing bureaucracy; In this context, the EU has introduced various omni - bus packages over the years, including measures to reduce reporting requirements relating to ESG and other obligations for companies under European cli - mate legislation. These packages will ease the burden on many com - panies. For example, CSDDD will come into force later as a result of the changes; it will also cover fewer companies and contain fewer due diligence obliga - • strengthening the single market; • improving financing opportunities; • developing a skilled workforce; and • co-ordinating policy.
tions. The CSRD has also been simplified in terms of reporting. In Germany, numerous measures to support the econ - omy have been implemented or are planned. A number of investment incentives are currently being introduced. These include tax incentives for investments in equip - ment or research and development. Furthermore, cor - poration tax will be reduced by one percentage point annually for five years, starting in 2028. Energy-inten - sive industries are also expected to receive relief from energy costs. To this end, the introduction of an “indus - trial electricity price” based on the CISAF presented by the EU is planned from 2026 onwards. Public Awareness With mining in Germany being viewed increasingly crit - ically in recent decades, a change can now be seen; in particular, coal mining in Germany has encountered strong public opposition, and not only due to the large amount of surface area required. The tense geopolitical situation and high dependence on critical raw materials from a few global players has also led to a change in public perception of mining. Strengthening Germany’s independence is a key topic of public debate. The rising energy prices resulting from the war in Ukraine have particularly highlighted the importance of independence. Innovative mining projects that engage the local popu - lation can contribute to a more positive perception of mining. Best practice examples include lithium extrac - tion projects. As well as clean lithium extraction, these projects often generate heat from geothermal energy and feed it into the district heating network. Environmental and Occupational Health and Safety In Germany, high standards of environmental protec - tion and occupational health and safety are enshrined in various pieces of legislation that must be taken into account in mining activities. During the approval pro - cess, the interests of mining projects are considered alongside those of environmental protection. In this context, the strict requirements of water law, nature conservation law and emission control law must be considered. Recultivation aspects also have to be considered at the approval stage.
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