Grand coalition presents new plan to meet 2030 climate goals

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The CDU/CSU and SPD have put together a climate protection package in order to align Germany with the 2030 emission targets of the Paris Agreement. Over the next few years, consumers will have to be prepared for higher prices at petrol stations. In return, state premiums will be offered for e-cars and climate-friendly heating systems.

For more climate protection in Germany, citizens and companies will face far-reaching changes. The leaders of the Grand Coalition agreed on a package of measures with which the Federal Republic of Germany wants to achieve its binding climate protection targets, at least for 2030. An overview of the most important plans.

CO2 pricing: The CO2 pricing of petrol, diesel, heating oil and natural gas is to start in 2021 with a fixed price for pollution rights of ten euros per tonne of CO2. By 2025, the price is to rise gradually to 35 euros. Only then is the price of the pollution rights to be determined via a trade and within a corridor of supply and demand. These pollution rights do not have to be traded by end customers, but by companies that market or supply fossil fuels. As a consequence, petrol and heating prices will increase.

Transport: In return for the CO2 pricing, which the state hopes will generate billions of euros in additional revenue, the commuter allowance is to rise, among other things. According to the plan, 35 instead of 30 cents per kilometre will be tax-deductible – but only from the 21st kilometre and for a limited period until the end of 2026. The coalition also wants to make rail travel cheaper. The value added tax on long-distance tickets is to be reduced from the current 19 percent to 7 percent. For e-cars under 40,000 euros, there will be a higher buying incentive. The motor vehicle tax is to be aligned more closely than before with CO2 emissions.

Heating: Anyone who replaces an old oil-fired heating system with a more climate-friendly model will benefit from a replacement incentive of up to 40 percent of the costs. From 2026, the installation of new oil heating systems will be prohibited in buildings in which it will be possible to generate heat in a more climate-friendly way. Tax incentives are planned for energy-saving refurbishments of buildings.

Green electricity: In return for a CO2 price for transport and buildings, the renewable energy surcharge for the promotion of green electricity is to be reduced from 2021. The expansion of green electricity, on the other hand, is to be accelerated. At present, the expansion of wind power on land is faltering due to long approval procedures and many lawsuits. In order to increase the acceptance of new wind turbines, municipalities are to receive financial participation in the operation of plants in future. In the case of the expansion of photovoltaics, an existing subsidy limit is to be lifted.

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