Industry and unions present joint CO₂ price position

In a broad alliance, industry associations and workers’ unions have developed joint “Guidelines for CO₂ pricing” in Germany. In a position paper, energy industry associations BDEW and VKU, the Federation of German Industries (BDI), the Association of German Chambers of Commerce and Industry (DIHK) and the German Trade Union Association (DGB) say that CO₂ pricing should be one climate action instrument among many in sectors not covered by the European Union Emissions Trading System (ETS). They reject the integration of transport and buildings in the ETS and instead come out in favour of a CO₂ price built on the existing energy taxes and levies. This would be better for planning security, social fairness and it would be more feasible politically. The organisations call on the federal government to “soon make a reliable decision within the framework of a holistic climate policy strategy.”

After shying away from the debate for a long time, the governing CDU/CSU alliance and Chancellor Angela Merkel herself have recently announced their willingness to look into CO2 pricing as a way to reach Germany’s 2030 climate targets. The concrete concept, however – whether it be a new CO₂ tax or a cap-and-trade system – is heavily disputed. Merkel herself floated the idea of “a coalition of the willing” among European Union countries and announced that the government will make key decisions on climate action in September.