Germany to phase out coal by 2038

Germany should shut down all of its coal-fired power plants by 2038 at the latest, a government-appointed commission said on Saturday, proposing at least 40 billion euros ($45.7 billion) in aid to regions affected by the phase-out.

The roadmap proposals, a hard-won compromise reached early on Saturday after more than 20 hours of talks, must now be implemented by the German government and 16 regional states.

They embody Germany's strategy to shift to renewables, which made up more than 40 percent of the energy mix last year -- beating coal for the first time -- and follow a 2011 decision to halt nuclear power.

Chancellor Angela Merkel's cabinet welcomed the plan hammered out by the commission that included 28 voting members from industry, academia, environmental groups and unions, plus three non-voting members from the ruling parties.

"Less CO2, more new jobs, a secure power supply and affordability: a strong signal," Economy Minister Peter Altmaier said on Twitter.

The panel, which began its work in June, said at least 40 billion euros in aid should be provided for coal-mining states affected by the exit, less than the roughly 60 billion euros they had sought.