News
12 Jul 2019, 13:16
Freja Eriksen

NGO Germanwatch calls on government to follow 12 other EU states with CO2 tax

Clean Energy Wire

Twelve EU member states have already set a price on CO2 and all opted for a tax solution as Germany continues discussions on the subject, shows an analysis from NGO Germanwatch. Of these twelve, nine have done so in one or both of the sectors of transport and heating. “A decision by Germany in favour of emissions trading for transport and buildings would be taking a special path,” writes the NGO in a press release. Germanwatch calls it “striking” that “all twelve EU states that have implemented additional CO2 price instruments in addition to the European Emissions Trading Scheme have decided in favour of a tax solution.” Study co-author Oldag Caspar recommends that “the German government should at least decide this year on a CO2 price for transport and buildings and - like the European partners - opt for tax reform.”

After shying away from the debate for a long time, Germany's political leaders are now considering putting a price on CO2 to help the country reach its climate targets. Chancellor Angela Merkel and her "climate cabinet" are looking into CO2 pricing, and ministries, major parties and research institutes are all pitching their ideas for how a carbon price could be designed - whether in the form of a CO2 tax or as a trading scheme.

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