Germany's governing parties on Friday agreed a new climate protection packa...
BERLIN - Germany’s governing parties on Friday agreed a new climate protection package worth more than 50 billion euros through 2023, including a domestic carbon price for transportation and heating in buildings.[L5N26B2FZ]
The package envisages incentives to make consumers change their behavior and reduce emissions of carbon dioxide in their daily life. Below are key parts of the package.Germany will introduce a carbon dioxide emission price for transport and heating in buildings from 2021, starting at 10 euros a ton. It will double to 20 euros in 2022 and then rise by 5 euros a ton each year to reach 35 euros in 2025.In 2026, the certificates will be auctioned in a price range between 35 euros and 60 euros a ton.
All proceeds from the new pricing system will be re-invested in climate protection or given back to citizens.The government will reduce an existing surcharge from 2021 which consumers pay via their electricity bill to support the expansion of renewable energy sources such as solar and wind. Germany will extend car tax exemptions for buyers of electrified vehicles until 2025. At the same time, Berlin will raise cash incentives for buying electrified cars.Germany’s state-owned Deutsche Bahn railway operator will receive additional capital of 1 billion euros per year until 2030 to improve quality and speed of rail connections.
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