Factbox: New German climate targets due on Wednesday

MVV Energie AG

11/05/2021 10:14

FRANKFURT, May 11 (Reuters) - The German cabinet is due to
agree on tighter sector targets for carbon emission curbs on
Wednesday and probably bring forward an exit date for ending
coal generation currently set at 2038.
    A draft law, seen by Reuters https://www.reuters.com/business/energy/energy-sector-bear-brunt-stepped-up-german-climate-law-draft-2021-05-06,
 showed the energy sector was identified as a key CO2 emissions
cutter via electrification. It must curb carbon pollution by
nearly two thirds.
    This is far ahead of only slightly higher targets for
industry and a lower target for agriculture in the revised draft
vis-à-vis the original.  urn:newsml:reuters.com:*:nL8N2MT3SO
    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 did not go far enough to ensure climate
protection. It may well become a blueprint for stricter
environment action by governments elsewhere.  urn:newsml:reuters.com:*:nL8N2MM3HN
    Germany is also seeking to gain an edge in low-carbon
technologies.  urn:newsml:reuters.com:*:nL8N2MU2DY
    The draft law will affect this year's general election
campaign when Chancellor Angela Merkel's conservatives must hone
their green profile, with Greens currently leading in the 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 and the new targets will mean further reductions in
the 2020s. The law stopped short of making detailed
recommendations for post-2030.
    
    LEVER
    The most important tool to implement the law will be a levy
on carbon pollution 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 draft law expressly allows a "different pricing
structure" in order to drive a departure from old oil and gas
heating systems and purchases of battery-powered cars.

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