In the past few years, the energy giant RWE has greatly expanded its green electricity business. But for many shareholders that is not going fast enough. The future CEO Krebber must accelerate the coal phase-out.
At Germany’s largest electricity producer, shareholders are pressing for a faster coal exit. “With CO2 emissions of almost 69 million tons in 2020, RWE is still an emissions heavyweight in Europe,” criticized the sustainability specialist from the Sparkasse fund subsidiary Deka Investment at the virtual general meeting. It is therefore necessary to accelerate the phase-out of lignite. She also sees the issue of wind energy not being adequately represented on the Supervisory Board. “Wind power is a big topic for future power generation and for RWE. The importance of the division is currently not adequately reflected in the supervisory board. The necessary competence is still missing here,” she said. Union Investment expert Henrik Pontzen argues similarly. The sustainable transformation of the energy industry is a marathon. The first kilometers have been made with the focus on renewable energies. He appealed to future RWE boss Markus Krebber to speed up the renovation.
2.6 billion euros in compensation
The outgoing RWE CEO Rolf Martin Schmitz assured the shareholders that the company management was working hard to make the company more and more sustainable. Schmitz described reports that RWE could sell its fossil fuels or outsource them from the group as “pure speculation”. The public law contract on the coal phase-out set “narrow limits of action for such measures”. RWE will receive compensation of 2.6 billion euros for the premature shutdown of all lignite power plants by 2038. Schmitz was confident that the EU Commission would wave this aid through in the ongoing investigation.
RWE wants to be climate neutral by 2040
The company, which used to be strongly focused on nuclear power and coal, is transforming itself into one of the largest producers of green electricity in Europe. By swapping business areas with long-standing rival E.ON, Schmitz had significantly expanded green electricity generation at RWE and given it a boost. At the end of April, the previous CFO Krebber took over the helm at RWE. He wants to expand the green electricity business by 2022 alone with investments of five billion euros. After the coal phase-out agreed with the federal government, the generation of electricity from this climate-damaging fuel is to end in 2038 at the latest. RWE wants to generate climate-neutral electricity by 2040.
“Climate killer with worldwide consequences”
For environmentalists, this is not happening fast enough. Climate activists who demonstrated in front of the headquarters in Essen complained that RWE still generated 79 percent of its electricity from coal, gas and uranium last year. Thus the group remains “a climate killer with worldwide consequences”. The new CEO Krebber must liquidate the lignite division by 2030 at the latest, demanded the environmental organization Greenpeace, if the company wants to meet the Paris climate protection target.
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