Angela Merkel and her Social Democrat vice-chancellor Olaf Scholz delivered what is meant to supposed climate-rescue measures aimed at halving Germany’s carbon emissions by 2030 to avoid defaulting on its 2015 Paris treaty promises.
The outcome of marathon talks within Merkel’s “climate cabinet,” comprising conservative and center-left minsters and coinciding with worldwide “Fridays for Future” protests, however was decried by environmentalists as haphazard and too little.
Scholz in his key role as Finance Minister described the packet as “socially balanced climate protection,” costing the government a total of €54 billion by 2023, and a “chance” to modernize German industry and create innovative new jobs.
Cabinet’s agreed measures would raise motorists’ petrol and diesel prices in steps by 2026 in line with the EU’s existing regime of carbon emissions certificates.
CO2 emitted in Germany would cost 10 euros per ton, rising to 35 euros per ton by 2025.
Commuters would get compensation through increased tax rebates, cheaper train travel — through lower sales tax on tickets — and higher tax on short-haul flights.
Subsidies for electric vehicles — currently struggling to increase their share of the German car market — will be boosted for cars costing less than €40,000. Vehicle tax costs would also be aligned more closely to cars’ emissions.
