Germans could receive revenue from carbon price from 2025, says finance minister

A large part of the country’s revenue from the increasing national carbon price on fuel for transport and heating could be passed on to the country’s citizens from 2025, said finance minister Christian Lindner. "In 2025, we expect 13 billion euros in revenue from the national carbon price," the Free Democrat (FDP) told parliament, according to a report by newswire dpa. If it were only up to his ministry, "a larger part of this would be paid out to citizens per capita", he added. In their coalition agreement, the three governing parties said they would develop a “climate bonus” mechanism (“Klimageld” in German) to compensate citizens for the rising cost of carbon. However, it remains unclear how the money could be distributed because Germany lacks a system via which all residents could be paid. Lindner said it would be technically possible to pay out the climate bonus in 2025.

Germany’s national carbon price will rise to 40 euros per tonne at the beginning of next year, and to 50 euros in 2025, according to government plans. But how much of the corresponding government income can actually be paid out to citizens will depend on how much of it is left over, given that the government also plans to tap into it for numerous other climate measures.