Conservatives propose national emissions trading system for transport and buildings

German Chancellor Angela Merkel's conservative CDU/CSU alliance has proposed setting up a national emissions trading system for transport and buildings, with an upper and lower price limit, as part of major climate action decisions planned for a government meeting on 20 September. The joint 7-page climate action concept, seen by Clean Energy Wire, contains a wide range of proposals for all sectors. It also proposes a change in Germany’s core incentive for renewables investment: a step-by-step decrease of the levy power customers have paid for decades to finance state-guaranteed feed-in tariffs for renewables operators. CDU and CSU are now betting on innovation to reach climate goals, and aim to incentivise this with support programmes and tax breaks for businesses and research. Citizens should receive tax rebates even for small-scale investments in climate-friendly appliances, and the motor vehicle tax for newly registered cars should fully take into account CO₂ emissions. The paper also includes the idea of an "innovation fund" to finance climate action. With the help of a climate bond, CDU and CSU aim to "mobilise private capital" for the fund. 

Merkel's grand coalition partners CDU, CSU and SPD will meet today (13 September) to try and resolve remaining major sticking points ahead of next week's crucial "climate cabinet" meeting (20 September). That day, the government aims to present a package of key proposals to help ensure Germany reaches its 2030 climate targets, but has yet to merge the many proposals from parties and ministries into one strategy.