• German government to expand carbon pricing across economy to reach 2030 carbon reduction targets

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      Patrick Lavery

      Combustion Industry News Editor

The German government has agreed a plan to set a price on carbon that will go beyond the European Emissions Trading Scheme system, with buildings, transport, and domestic applications all to be covered, with the overall objective of helping Germany meet its target of a 55% decrease in carbon emissions from the 1990 level by 2030. The rollout of the pricing is to begin in 2021, rising gradually until 2025; for example, 3 euro cents per litre will be added to petrol and diesel beginning in 2021, going up to between 9 and 15 cents by 2025. While applying to a wider range of the economy than the EU ETS, the German system will be based on it, and the whole package will also include incentives for buying electric cars and assistance packages to those who travel long distances, amongst other measures. Rail prices will fall, though air travel will be subject to additional taxes. Climate groups have refused to embrace the new package, arguing it is an insufficient response to the climate change crisis.