CO₂ pricing: Federal Council warns of more bureaucracy

The Federal Council sees a need for adjustments to the federal government's planned CO₂ pricing. It calls for simpler rules to avoid increased bureaucracy.

This article is part of the special feature on bureaucratic madness in the skilled trades.

In light of the German government's planned CO₂ pricing for the heating and transport sectors, the Federal Council warns of increasing bureaucracy. The additional burden on companies associated with the pricing could impair their international competitiveness. The rules should therefore be simplified.

Furthermore, the Federal Council demands that double burdens for companies be avoided . Facilities subject to the European emissions trading system should therefore be exempt from the national CO₂ price. The states also believe it must be ensured that the costs of acquiring the certificates are not passed on indiscriminately to all consumers through higher fuel prices.

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Fundamental reform called for

Furthermore, the states reiterate their demand for a reform of energy taxes , levies, and charges. The current system must be fundamentally overhauled to better achieve climate protection goals.

Similar to their statement on the Federal Climate Protection Act, the states again criticize the fact that the financial impact of the climate protection package on the states and municipalities was not taken into account. They reiterate their demand that the federal government promptly initiate talks to clarify the distribution of the increased and decreased revenues between the federal government, the states, and the municipalities.

CO₂ price starts at ten euros

The German government's planned Fuel Emissions Trading Act will require companies trading in heating oil, liquefied petroleum gas (LPG), natural gas, gasoline, coal, and diesel to purchase certificates for the greenhouse gas emissions caused by their products, starting in 2021. For these certificates, they will pay the CO₂ price , which will begin at ten euros per ton. The price will gradually increase to 35 euros by 2025. From 2026 onward, the pollution allowances will have to be auctioned . The price will then be determined by the market, with a price corridor ranging from a minimum of 35 euros to a maximum of 60 euros.