After Federal Council decision on TEHG law: Mobility must not become a social issue!

(ots) The decision of the Federal Council regarding the regulation of the transition of the national emissions trading under the Fuel Emissions Trading Act (BEHG) into the European Emissions Trading System ETS-2 can lead to a significant increase in fuel prices without additional measures - with correspondingly negative consequences for businesses and consumers, warns the Central Association of German Motor Trades (ZDK) on Friday in Berlin.

Of course! Please provide the text you need translated from German to English.
Of course! Please provide the text you need translated from German to English.

"With the integration of the national emissions trading into the European Emissions Trading System ETS-2, the CO2 price for fuels threatens to rise further," fears ZDK President Arne Joswig. "To ensure that mobility remains affordable, we need a dual strategy: On the one hand, political efforts to ramp up electromobility must be resumed after the funding phase-out, and on the other hand, renewable fuels must be recognized as an equivalent solution and anchored as such in a fuel strategy with all means. Both are necessary to keep CO2 prices affordable in the long term," warns Joswig. "Otherwise, we must prepare for horrendous prices of 300 euros per ton of CO2 by 2030. This corresponds to an additional increase in fuel costs of 70 to 80 cents per liter of gasoline or diesel. Mobility must not become a social issue!"

Who pays for the price increase?

Due to the planned reduction of emission certificates, the CO2 price in ETS-2 could rise massively. The EU does have a market stability reserve (MSR) with 600 million certificates for this case. This means that in an extreme situation, the MSR could only cover 600 million tons of CO2.

However, since the certificates extend over several years, it is realistic to assume that the MSR can only cover part of the demand per year. If the demand for CO2 certificates remains high, the market stability reserve alone will not be sufficient to prevent a price explosion. Consumers would then have to foot the bill.

Strategy for Transition

The ZDK therefore calls on the German government to accompany the transition to ETS-2 with a sustainable strategy for affordable mobility. This also includes promoting renewable fuels, especially as the rise of electromobility is stalling due to political negligence. Only through the interplay of both technologies can the impact of rising CO2 prices be limited.

"Electromobility will play a crucial role, and its rise must continue to be supported - for example, through a demand-oriented expansion of the charging infrastructure, cheaper charging electricity, and purchase premiums. At the same time, renewable fuels must be expanded and recognized as a relieving option by 2030, so that mobility does not become a luxury good," says Joswig.

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