Will there be a minimum price on carbon in Germany? And how?

(EurActiv, 11 Apr 2019) In Germany, calls for introducing a CO2 emission tax are getting louder. Yet, the German government continues to be divided on the matter, with the French ‘gilet jaunes’ appearing to be quite the deterrent. What would a socially acceptable price on carbon look like? EURACTIV Germany reports.

Climate researcher and head of Mercator Institute, Brigitte Knopf, highlighted during the Berlin Energy Transition Dialogue that the cost of CO2 in Germany should be introduced with a fair distribution mechanism.

“Should there be a price on carbon, it must, in any case, have public support,” Knopf told EURACTIV. According to her, one possibility would be to distribute state revenues from the trade of CO2 directly to citizens.

The debate on whether a minimum carbon price should be introduced has become more intense in Germany. Many experts see this as an efficient instrument to reach the climate goals laid out in the Paris Agreement.

While Economy Minister Peter Altmaier of the Christian Democratic Union (CDU) spoke against this for a while, his ministry stated last week that the issue of CO2 pricing should be examined.

Chancellor Angela Merkel (CDU) was also “very open” to the idea, Environment Minister Svenja Schulze from the Social Democratic Party (SPD) said after the first ministerial session on Wednesday (10 April).

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EurActiv, 11 Apr 2019: Will there be a minimum price on carbon in Germany? And how?