The government of Poland, a country heavily reliant on coal, initialed an agreement with the coal mining industry Wednesday to phase out coal production by 2049.
The deal, which has been under negotiation for months, marks the first time that the powerful coal mining sector in Poland has agreed to end its own existence.
The plan includes subsidies that would soften the blow on the miners. The subsidies, which would represent a large burden on the state budget, also could possibly be in violation of European Union regulations for subsidies to dying industries.
Government and union representatives initialed the agreement on Wednesday in Katowice, a city in the coal-mining heartland of Silesia, in southern Poland, the state news agency PAP reported. The action clears the way for the plan to go to the European Commission, the executive arm of the European Union, for approval. The final signing is expected in May.
Many analysts say that continuing to produce coal until 2049 is far too long given the high environmental cost of burning coal and with economic momentum moving toward renewable energy sources.
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