German conservatives propose discount on electricity and support for rural commuters

The deputy head of Chancellor Angela Merkel’s conservative CDU parliamentary group, Andreas Jung, has suggested consumers should pay less for electricity and receive an “eco commuters’ allowance”, to offset the higher costs on fuel and heating that a CO2 price would entail. Environment Minister Svenja Schulze (SPD) previously proposed giving citizens a yearly climate premium but Jung argues that giving everyone the same amount would be ineffective, as commuters in rural areas with fewer public transport options needed more support. Jung also suggested subsidies and tax breaks for building refurbishments. The money to finance his proposals should come from higher taxes on air traffic.

The German government’s climate cabinet is set to decide whether – and how – to put a price on CO2 by 20 September. So far, even the governing CDU/CSU and SPD parties have failed to agree on how to reach the country's 2030 climate goals. Some government members have even called the continuation of the grand coalition government into question as a result.