The German energy companies RWE and Uniper have just lost their lawsuit, claiming the right to billions in compensation because of the Coal Prohibition Act.
The Act bans all coal burning in the Netherlands from 2030, in a Dutch effort to limit the country’s CO2 emissions, and fight climate change.
And, you guessed it, coal-based power stations in the Netherlands are fuming with rage. 😬
A big investment
While some companies choose to put their money towards climate-friendly projects, RWE is an example of completely opposite behaviour.
The company recently splurged €3.2 billion on a coal-burning power station in Eemshaven, writes RTL Nieuws. And they are not alone.
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With the Coal Prohibition Act, however, stations like that in Eemshaven will have two options: find a more future-proof revenue model, or shut down.
Well, RWE and Uniper went for a third option: sue the government and hope for the best. But, despite how the saying goes, three wasn’t their lucky number.
No right to compensation
Honouring its name as the “City of Peace and Justice“, the judge in The Hague recently announced that the companies had no right to compensation, as they were given plenty of time to restructure before being forced to close down.
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Minister of Climate and Energy, Rob Jetten, has described the ruling as an important precedent for future climate conflicts between the Dutch government and large polluting corporations.
In a statement to RTL, RWE claims it is currently considering appealing the ruling, claiming the company’s property rights to be infringed.
The decision is nevertheless seen as a sustainability victory and an important symbol of the Dutch government’s climate priorities.
What do you think of the ruling? Tell us in the comments below!
