News Digest Item
31 May 2017

Call for EU-wide CO2 floor price

Handelsblatt

In a guest commentary published by the business daily Handelsblatt, Franz Untersteller, environment minister of the state of Baden-Wuerttemberg, and Green member of the federal parliament Oliver Krischer call for a CO₂ price to be set for energy sources harmful to the climate. They propose to introduce a CO₂ floor price for plants under the EU Emissions Trading System (ETS), in coordination with Germany’s European neighbours and with the long-term goal of establishing an EU-wide floor price. In sectors not included in the ETS, tax rates for coal, oil, and natural gas should be adapted to reflect actual CO₂ emissions, they argue. The CO₂ price should equal the current electricity tax, which would subsequently be abolished, write Untersteller and Krischer.

For background on reform proposals, read the CLEW factsheet Germany ponders how to finance renewables expansion in the future.

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