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Germany unveils $60 billion climate policy package.

September 24, 2019

On September 20, 2019 German Chancellor Angela Merkel’s government agreed to support a $60 billion package of climate policies aimed at getting Germany on track to meet its goal of reducing greenhouse gas emissions by 2030 according to a New York Times report.

German Chancellor Angela Merkel – Wikipedia

The proposed measures — which include a scheme to charge industrial polluters for carbon emissions and a raft of incentives — had been discussed for weeks, and Ms. Merkel’s conservatives and their junior partners, the center-left Social Democrats, took more than 18 hours to reach the agreement.

Under the terms of the new package, Germany will work to reduce carbon emissions by 55 percent of 1990 levels by 2030. Important parts of the agreement include the following:

  • A cornerstone of the agreement is to begin charging in 2021 for carbon emissions that are generated by transportation and heating fuels.
  • Companies in the transportation industry will be required to buy certificates for 10 euros (about $11) per ton of carbon dioxide emitted. The price will increase to 35 euros per ton by 2025, and a free-market exchange will open afterward, allowing the polluters to auction their carbon pollution permits. Consumers will likely face higher gas prices that the government will offset by raising tax breaks for commuters.
  • Another measure is establishing a panel that will regularly review the government’s progress toward reaching its climate goals, to adjust the plan along the way and keep the country on track.

The measures are to be financed through tax levies and from Germany’s climate fund. Those sources will provide more than 54 billion euros, or $60 billion, in financing through 2023, averting loans and budget deficits, said Olaf Scholz, the finance minister.

What this means to you
Germany’s government has agreed to support a $60 billion package of climate policies aimed at getting Germany back on track to meet its goal of reducing greenhouse gas emissions by 2030.

MIRATECH can help
Contact MIRATECH for stationary engine emissions solutions in Europe.