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02 Oct 2019, 10:07
Freja Eriksen Julian Wettengel

Govt expects new CO2 pricing to raise 19 bln euros for climate package

Handelsblatt / Clean Energy Wire / Frankfurter Allgemeine Zeitung

[UPDATE adds media report on climate action cost estimate of 150 billion euros by 2030]

The German government expects CO2 pricing in the buildings and transport sectors to bring in 18.8 billion euros by 2023 for its climate action package, writes business daily Handelsblatt. Finance minister Olaf Scholz wants to ensure the package's implementation through a supplementary budget to be approved by the federal cabinet on 2 October. A main part of the draft budget, seen by Clean Energy Wire, is an economic plan for the country's Energy and Climate Fund, which is set to grow from 6.1 billion euros this year to 11.75 billion in 2023. Revenues from the European trade of CO2 allowances in energy and industry (EU ETS) are expected to raise an additional 14 billion euros, according to the draft. In all, the German government's climate package decided on 20 September has a volume of 54.4 billion euros between 2020 and 2023. The draft states that the 2020 budget would not incur any new debt.
Frankfurter Allgemeine Zeitung reports that according to finance ministry sources the planned climate action measures would cost a total of about 150 billion euros by 2030.

In September, the German government coalition agreed on a climate action package to put the country on track to meet its 2030 climate targets. Although the policy package contains crucial measures, such as a price on carbon emissions from transport and buildings, it has been widely criticised as unambitious. In its initial strategy paper, the government coalition agreed on an initial price tag for CO2 emissions of 10 euros per tonne in 2021. Revenues would rise if the price is set higher following current debates.

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