Factbox: German government agrees on tougher climate targets

MVV Energie AG

12/05/2021 11:58

(Updated May 11 factbox with decision taken)
    FRANKFURT, May 12 (Reuters) - The German cabinet agreed on
Wednesday on tighter sector targets for carbon emission curbs
which implies bringing forward an exit date for ending coal
generation, currently set at 2038.  urn:newsml:reuters.com:*:nL8N2MZ3F4
    A new law, which could trigger 8 billion euros ($9.70
billion) of additional climate protection spending in the 2022
budget and measures within weeks after passing parliament,
showed the energy sector should become a key CO2 emissions
cutter, via electrification. 
    It must curb carbon pollution by nearly two-thirds between
2020 and 2030, far ahead of a rough third for industry and a
fifth for agriculture, and 43% for buildings and transport each.
    The moves follow a court ruling last month https://www.reuters.com/business/environment/germany-must-further-tighten-climate-change-law-top-court-rules-2021-04-29
 that a 2019 law failed to ensure sufficient climate protection.
 urn:newsml:reuters.com:*:nL8N2MM3HN
    It could help Germany gain an edge in low-carbon
technology urn:newsml:reuters.com:*:nL8N2MU2DY
    The law will affect this year's general election campaign
when Chancellor Angela Merkel's conservatives compete with the
environmentalist Greens, who are currently leading in polls.
    
    HIGHER OVERALL EMISSION TARGETS
    Germany will now aim for a 65% cut in carbon emissions by
2030 and net zero by 2045, up from a previous 55% for 2030 and
net zero by 2050.
    Germany's actual CO2 emissions are currently 40% below the
1990 level.
    The law stopped short of making detailed recommendations for
post-2030.
    
    LEVER
    One important tool to implement the law will be a levy on
carbon charged to suppliers of heating and transport fuels since
Jan. 1.
    By collecting an initial 25 euros per tonne CO2 equivalent,
due to rise to 55 euros a tonne, it enforces emission cuts while
raising money for the government to help consumers with rising
heat, electricity and travel bills. urn:newsml:reuters.com:*:nL8N2LT2OM
    The law expressly allows a "different pricing structure" in
order to drive a departure from oil and gas heating systems and
purchases of battery-powered cars, which will be tax-advantaged.
    Landlords are likely to shoulder half the additional costs
for heating arising from the legislation. urn:newsml:reuters.com:*:nL8N2MZ3A5

($1 = 0.8243 euros)

 (Reporting by Vera Eckert and Markus Wacket, editing by Kim
Coghill)
 ((vera.eckert@thomsonreuters.com; +49 30 2201 33654;
@EckertVera;))