German coalition divided over carbon pricing

(EurActiv, 10 Jul 2019) Should Germany put a price on carbon emissions from transport, buildings or agriculture, which are currently not covered by the EU emissions trading scheme? The question is dividing members of the ruling coalition. EURACTIV Germany reports.

Time is of the essence. By September, the German government wants to agree a final draft of the country’s upcoming climate protection law. Until then, however, a few stumbling blocks still need to be cleared.

This is why Environment Minister Svenja Schulze of the Social Democratic Party (SPD) has been trying to accelerate things for several months now.

In May, Schulze presented her own draft climate protection law – which was harshly rejected by the CDU – and sent it directly to the different ministries, effectively bypassing the usual procedure of submitting it to the Chancellor’s Office first.

Last Friday (5 July), Schulze followed up and substantiated her demand for a carbon price for non-ETS sectors, with three scientific reports. Her aim was to show how a carbon price can be introduced into the bill, without a tax being imposed on commuters, people in badly insulated buildings or poorer households.

Since then, the Christian Democrats and the Christian Social Union (CDU/CSU) has been sending very ambiguous signals. There is no agreement between members of the conservative union, as seen in the latest reaction of CDU party chief Annegret Kramp-Karrenbauer.

On Sunday (7 July), she cautiously spoke out in favour of a price on carbon.

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EurActiv, 10 Jul 2019: German coalition divided over carbon pricing