German corporations divided on carbon price

(EurActiv, 3 May 2019) In a debate on the potential introduction of a carbon price, an increasing number of German company associations are voicing their thoughts. Some fear their competitiveness would take a hit, while others are excited about new business opportunities. EURACTIV Germany reports.

If a price on carbon is to be introduced this year in Germany, it needs to essentially do one thing: set a strong signal so that companies promote climate-friendly investments, urged the German corporation initiative for energy efficiency, DENEFF.

The revenues of the tax should be used to specifically support taxpayers and affected corporations in saving energy. They should not, like in the case of the eco-tax, go into the country’s general budget.

DENEFF’s statement is shared by others. An increasing number of corporations currently argue in favour of a carbon tax because they hope for more security in future planning and the development of new business areas.

In politics, a lively debate has erupted on what a price model for carbon will look like. Other EU member states such as the UK, Ireland and Sweden have already implemented their own models.

Germany needs to get its climate protection regulation off the ground before the end of the year. By summer, German Christian Democrats (CDU) and Social Democrats (SPD) are set to develop their own concepts on how such a pricing mechanism will be implemented.

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EurActiv, 3 May 2019: German corporations divided on carbon price