CDU/CSU budget expert calls for higher CO₂ price to finance renewables levy

The vice chairman of the CDU/CSU parliamentary group Andreas Jung is launching a new climate programme for the party, Gerald Traufetter reports in Der Spiegel. In order for Germany to achieve the EU’s increased climate targets for 2030, Jung proposes to implement a higher CO₂ price, which is currently at 25 euros per tonne of CO2 and applies in the heating and transport sectors. The revenue should be used to finance the surcharge on renewable electricity, so as to “relieve citizens and the economy with a reduction in electricity prices,” Jung said in a statement obtained by Der Spiegel. "This way, the eco-surcharge for renewables can be completely abolished by the next federal government," he said. The budget holder believes that it is “simply not possible” to finance the compensation for the renewables levy, currently 20 billion euros annually, from the federal budget due to the high expenditures that have followed from the corona pandemic, Der Spiegel reports.  

Germany introduced a CO2 price in the heating and transport sector in January 2021 with a fixed price of 25 euros per tonne of CO2, which will increase to 55 euros by 2025. Electricity generation, industry and aviation are part of the EU’s carbon pricing scheme (EU ETS). The German renewables levy makes up about a quarter of the consumer power price and is used to support the expansion of renewable installations. By paying parts of it from the federal budget, the levy will be curbed in 2021 and up til 2024, the German parliament has decided - and in the medium term, could be abolished entirely, energy minister Peter Altmaier has said.