Germany's new coalition of SPD, Greens and liberal FDP agreed a coalition treaty that brings forward the country's coal phase-out date from 2038 to 2030.
The parties also plan to increase Germany's renewables target for 2030 from 65% to 80%.
Plans are based on power demand rising to a range of 680-750 TWh/year in 2030. Party leaders presented the agreement after weeks of talks in Berlin following the September 26 election.
The treaty now needs to be approved by the SPD and FDP party conferences, while the Greens require approval by all members.
Olaf Scholz has taken over as the new Chancellor.
Green Party co-leader Robert Habeck is set to become the new economy, energy and climate minister with the Greens also set to take the foreign and environment ministries.
In a press conference, Habeck confirmed the 2030 coal exit date and announced plans to set a €60/mt floor price for CO2.
EUA carbon allowance prices hit a record €72.91/mt November 24, almost tripling year-on-year amid tighter EU climate targets.
The talks have been dogged by spiralling energy prices with the future role of gas one of the more controversial issues between the parties and key decisions from EU taxonomy guidelines to the new Nord Stream 2 pipeline looming.
Germany's nuclear exit in 2022 and ongoing coal phase-out plans are set to increase Europe's biggest economies reliance on gas and renewables.
Earlier reports indicated that the treaty would include a 2040 target date to phase out gas which slipped to 2045 as set out by the climate law.
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