German conservatives call for revenue from new EU emissions trading scheme to return to member states
Tagesspiegel Background
The CDU/CSU conservative alliance in Germany has called for revenues from the upcoming Emissions Trading System (ETS II) for fuels used in transport and heating to mainly flow back to the member states, instead of being distributed among all EU countries, reports Tagesspiegel Background. However, reforming the current system would be difficult as it would have to be agreed at EU level.
If the system was further reformed, “we are in favour of ensuring that the revenues from emissions trading in Europe actually remain with the member states as far as possible,” said CDU lawmaker Thomas Gebhart. He was against “disproportionate redistribution” among member states, arguing that it would be “difficult to explain” if large parts of the revenues collected in Germany went to other countries. The CDU/CSU parliamentary group had tabled a motion on this in November.
The EU decided to introduce a second emissions trading system from 2027, as well as a Climate Social Fund – financed by revenue from the ETS II – to help poorer households. One key prerequisite for many member states like Poland to support ETS II in the first place was the promise of additional aid in this way. The ETS II could be postponed to 2028 if oil and gas prices are exceptionally high, making it more of a burden especially for low-income households.
A report published by the Institute for Applied Ecology found that under the redistribution scheme, Germany would receive 92 percent of the revenue it would get without the solidarity mechanism, wrote Tagesspiegel. Co-author of the report, Jakob Graichen, said that the economic power per person in Germany is five times higher than in Bulgaria, so a redistribution of revenues is needed to avoid placing a burden on poorer people. “You can also look at it this way: Without the Climate Social Fund, there would be no ETS II at all and therefore no revenue,” he said to Taggesspiegel.
Even though the CDU/CSU alliance has a good chance of becoming the strongest party during the next legislative period, it is unlikely the EU would reopen the directives on the Climate Social Fund and changes would probably not be approved by the council, the paper reports.
