“Cross sector association alliance calls for redistribution of Energiewende costs”

A reform of Germany’s system to finance the country’s Energiewende is needed to distribute costs more fairly and push renewable electricity use in heating and transport, writes a cross-sector alliance of associations in a joint statement. In comparison to energy sources in the heating and transport sectors, electricity today is “heavily burdened” by taxes and levies, which inhibit expanding the energy transition to those two sectors. The group proposes reallocating Renewable Energy Act (EEG) costs according to energy sources and sectors and based on the sources’ CO₂ emissions, which would bring down the EEG surcharge by outsourcing costs for industry exemptions to the federal budget, and abolishing the electricity tax. A CO₂ floor price in the power sector could further help bring down the EEG surcharge, writes the group. The alliance includes consumer, tenant, environment protection and trade associations.

Find the statement in German here.

For more information, see the CLEW factsheet Germany ponders how to finance renewables expansion in the future and the CLEW article German carbon tax most efficient way to meet climate goals – study.