Compliance is monitored: Authority for the supply chain law moves to the east

Compliance is monitored
Supply Chain Act Authority Moves East

By phasing out lignite, the federal government has committed itself to structurally strengthening the regions concerned. One step is the settlement authorities. In future, the tasks from the supply chain law will be monitored from Central Germany.

In the course of the structural change in the planned phase-out of coal, the Federal Office of Economics and Export Control is getting two new locations in the east – in Borna in Saxony and in Merseburg in Saxony-Anhalt. As announced by the Federal Ministry of Economics, tasks under the new supply chain law are to be performed there in the future. This obliges companies to comply with social standards in global supply chains from January 1, 2023.

In the course of the coal phase-out, the federal government had promised to create 5,000 new jobs in the structurally weak regions by 2029. These now include the two new locations of the Federal Office for Economics and Export Control (Bafa) in the Central German district. The climate-damaging coal-fired power generation in Germany is to be ended by 2038 at the latest. The possible new government made up of the SPD, Greens and FDP is striving for a faster exit – “ideally” by 2030, as the exploratory paper says.

Federal Minister of Economics Peter Altmaier described the two new locations of the Federal Office as a strong commitment to the Central German district and to the local people. Saxony’s Prime Minister Michael Kretschmer welcomed the fact that, following the successful establishment of the Bafa branch in Weißwasser, a second location will now be opened in Saxony.

Saxony-Anhalt’s Prime Minister Reiner Haseloff said that the acceptance of the energy transition and the success of the structural change depend crucially on how new and promising jobs can be created in the region. How many new jobs are to be created at the two new locations was not communicated. The Bafa has different tasks. Among other things, various funding programs run through the authority, for example the purchase bonus for electric cars.

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