The German parliament, known as the Bundestag, has approved an increase in the CO2 price applied to fuels like gas, heating oil, and gasoline. Beginning in January 2024, a 45-euro fee per ton of CO2 emission will be implemented. Previously, it was set at 30 euros. This move is the first step in the traffic light coalition's significant budget package.
Initially, the traffic light government had proposed raising the CO2 price to 40 euros due to high energy prices at the turn of the year. However, the budget ruling compelled them to revert to the steeper path laid out by the grand coalition years ago.
The extra revenue generated from the CO2 price will be allocated to the Climate and Transformation Fund, which will support various climate protection projects.
Consumers can anticipate increased costs for fuel, oil, and gas as a result of this decision. According to the ADAC, the price of a liter of gasoline might rise by around 4.3 cents, while diesel drivers should expect an increase of about 4.7 cents. Similarly, calculations by the comparison portal Verivox suggest that gas will increase in price by 0.39 cents per kilowatt hour and heating oil by 4.8 cents per liter. A typical family with a heating requirement of 20,000 kilowatt hours could incur additional annual costs of 78 euros for gas and 96 euros for oil heating.
Key Insights:
- The increased CO2 price is part of broader efforts to reduce carbon emissions in Germany.
- The CO2 price is expected to rise significantly over the next few years, leading to increased costs for fossil heating and mobility.
- Revenue generated from the CO2 levy will be instrumental in supporting climate protection measures.
- The effects of the CO2 price increase could be particularly challenging for low-income households and the middle class.
This move by the Bundestag is a critical component of Germany's traffic light plans, aiming to decrease carbon dioxide emissions. The increased CO2 price will significantly impact the costs of fuel, gas, and heating oil for consumers. For example, a liter of gasoline might rise in price by approximately 4.3 cents.
The Bundestag's decision to increase the CO2 price could have substantial implications for the climate. The revenue generated from this price increase will be allocated to the Climate and Transformation Fund, which will finance various climate protection projects.
Although the traffic light government initially wanted to increase the CO2 price to only 40 euros due to high energy prices, they ultimately agreed to a higher price of 45 euros, following the budget ruling. This decision could further influence the heating costs for households, with a typical family potentially facing additional annual costs of 78 euros for gas and 96 euros for oil heating.
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