Friday 20 December 2019
Germany signs off controversial climate change policy plan
After months of arguing the German Parliament has agreed a package of climate measures to come into force on January 1st2020.
The major sticking point was unlocked this week when a compromise was reached over a higher carbon price.
The compromise will see businesses pay a starting rate of €25 per ton of carbon they use from January, and will be eventually incorporated into an EU-wide carbon trading system.
However, businesses are angry that the move, which is yet to be passed into law, will damage Germany’s competitiveness.
In the other corner environmentalists have criticised the package of reforms for not going far enough, with Greenpeace claiming the carbon price compromise was nothing more than a step in the right direction.
Included in the measures are 10% cuts in long-distance rail ticket prices, while flights will face surcharges of up to 60 euros depending on distance.
To offset the higher costs for consumers and companies, the climate package includes subsidies for electric cars and tax incentives for greener heating, electricity and housing.
In line with the EU’s Green Deal plan, Germany is aiming to achieve carbon neutrality by 2050. The country also intends to reduce greenhouse gas emissions by 55% compared to 1990 levels by 2030.
