CO2 price could bring forward German coal exit – scientists
Clean Energy Wire
Germany should set a carbon price “significantly” higher than that of the European Emissions Trading System (ETS) on CO2 emissions across all sectors, the German National Academy of Sciences says in a press release accompanying its analysis of options to meet the country’s climate 2030 climate target. The researchers call for an initial price per tonne of around 25 euro, to rise over time. Revenues from the carbon price, which would be expanded to also cover the transport and buildings sectors, should be invested in low-carbon infrastructure and public works to bring down the cost of power, with some of it paid back to low-income households in the form of a “climate dividend”. The researchers say their proposal could speed up the end of coal-fired power in Germany.
The academy’s paper feeds into Germany’s ongoing debate about how to reach its 2030 target of cutting emissions by 55 percent compared to 1990 levels, and go carbon neutral by 2050. German Chancellor Angela Merkel recently threw her weight behind a CO2 price in sectors not covered by the EU ETS, long considered a taboo in German politics. The government plans to present a package of measures to support its planned climate action law on 20 September.