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EU Emissions Trading Is Being Delayed: Coalition Aims to Prevent 2027 Price Spikes at the Pump and for Heating
The black-red coalition aims to prevent price spikes at the pump for gasoline and diesel, as well as for heating with oil and gas, in Germany in 2027 through the CO2 price. Accordingly, the price corridor of 55 to 65 euros per tonne in 2026 should also apply in 2027. The two vice chairs of the parliamentary group, Andreas Jung (CDU) and Esra Limbacher (SPD), agreed to that. Earlier, the Wirtschaftswoche reported on it.
The background is that EU-level plans have changed. The EU member states want to postpone the European-wide start of the emissions trading system for the transport and building sectors from 2027 to 2028. In these sectors, the previously national CO2 pricing would come into effect.
“We urgently need clarity, in the interest of planning security and reliability, about which CO2-price will apply in Germany in 2027,” Jung and Limbacher told the German Press Agency.
In the Fuel Emissions Trading Act, it should be enshrined that 2027 should apply the same as 2026 - a corridor of 55 to 65 euros. The Environment Ministry is now examining whether this is legally feasible to implement and whether or which changes to the law would be necessary.
Without a political agreement within the coalition, the CO2-price would have kicked in in 2027, which already applies to industry. It currently stands at around 80 euros per tonne.
Stepwise Increase
Currently there is a CO2 price for the sectors of transport and buildings of 55 euros per tonne. This CO2 price has existed in Germany since 2021. With a gradually rising CO2 pricing, an incentive is to be created for more thriftiness as well as for a switch to climate-friendly technologies in order to reduce CO2 emissions. The CO2 price is based on a national emissions trading system. Large companies that sell fuels such as natural gas, heating oil, gasoline and diesel must purchase emissions certificates for this. Thus a price is created for every emitted tonne of CO2. The costs are passed on to end consumers. With rising CO2 pricing, refueling with gasoline and diesel as well as heating with natural gas and heating oil become more expensive.
The federal government has advocated that the European emissions trading for heating and transport start as planned in 2027, according to coalition politicians. To reach a compromise, however, a one-year postponement to 2028 was necessary. EU environment ministers had agreed on a climate target for 2040.
Content automatically translated.
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