Monday 15th November 2021
50 euros per ton from 2023
Economics calls for a higher CO2 price
In order to reduce CO2 emissions in Germany, the CO2 price should rise. But Grimm’s economic wise men are not moving fast enough. She makes suggestions as to how things could be different – and even reduce the burden on small and medium-sized incomes.
The Veronika Grimm economy calls for carbon dioxide emissions to be made considerably more expensive for consumers and companies, but at the same time to noticeably lower the price of electricity. “In the areas of transport and heating, the state-set prices for emissions – currently 25 euros per tonne of CO2 – should be converted into a real trading of certificates as soon as possible, if possible as early as 2023,” Grimm told the editorial network Germany (RND ). “50 euros per ton at the start in 2023 are quite manageable.”
To compensate for the resulting burdens, “the EEG surcharge as part of the electricity price should be dropped and the electricity tax should be reduced to the European minimum,” said Grimm. A family of four could thus be relieved of 300 to 400 euros per year. “An energy price reform could therefore be designed in such a way that there would be net relief for lower and middle income groups,” said the economics professor, who is a member of the Federal Government’s Advisory Council for assessing macroeconomic developments.
Cheaper electricity will make electrification in traffic, heating and industrial plants much more attractive. This would relieve the state: “Much of the necessary investments would be made by the private sector. The more the economy invests, the less need for action – especially funding – there is in the state.”
Purchase premiums for e-cars superfluous
With a view to the coalition negotiations between the SPD, the Greens and the FDP, Grimm made it clear that she believes it is possible to finance climate protection projects without higher taxes and breaches of the debt brake. “If we prioritize correctly, mobilize private investments by adapting framework conditions and take the international dimension of climate protection seriously. We have to think European when expanding renewable energies, and globally when switching to hydrogen and renewable energy sources,” she said.
It also makes sense to remove subsidies. “There a lot can be said: First the company car privilege. The commuter allowance could be reformed,” said Grimm. There is also no need for purchase premiums for e-cars, the ramp-up of e-mobility can be accelerated better by other measures, for example by expanding infrastructure.