Compensate for the price of CO2
Concept for climate premium is available
2/17/2022, 6:58 p.m
Refueling and heating should become more expensive due to CO2 pricing, but the state should return the income per capita to the citizens. A study shows how the climate premium can work. Environmental and social organizations are calling for a rapid introduction.
An alliance of environmental and social organizations as well as churches is calling on the federal government to quickly introduce a “climate bonus” to relieve the burden on citizens. At the same time, the CO2 price in the transport and heating sectors should be raised more quickly in order to have a steering effect – that would mean that fossil fuels such as oil and gas and thus refueling and heating would become more expensive.
The associations announced that the revenue from CO2 pricing should be returned to the population per capita. This means that each person would receive the same amount of the bonus, regardless of income and the level of CO2 emissions caused by heating and driving. With rising CO2 prices, government revenue increases, and with it the amount that is to be distributed to the population. The CO2 price in the transport and heating sector is 30 euros per ton this year, and according to the law it will rise to 55 euros by 2025. From 2026 onwards, a price corridor with a minimum price of 55 euros and a maximum price of 65 euros is to be set.
Antje von Broock, Managing Director of the Bund für Umwelt und Naturschutz Deutschland (Bund for the Environment and Nature Conservation) said that the pace of climate protection had to be increased, but that this had to be flanked socially. The CO2 price currently has no steering effect, this would start at 50 euros. The study assumes a per capita reimbursement of around 130 euros per year. The President of the German Nature Conservation Ring, Kai Niebert, said: “Anyone who emits a lot of CO2 and thus pollutes the climate more pays a lot, whoever emits little CO2 pays little. But everyone gets the same back.” SPD faction deputy Matthias Miersch criticized: “Anyone who is now demanding an increase in the price of CO2 is accepting that broad sections of the population who cannot simply switch to new heating systems or electric vehicles are being overwhelmed.” A “per capita fee” doesn’t change anything.
“Low bureaucracy, cost-efficient, legally secure”
The study by the Speyer University of Administrative Sciences, with reference to measures currently being discussed, such as reducing the EEG surcharge or a higher commuter allowance, states that these are either not sufficient in the medium term to be able to effectively compensate for the social burden of rising CO2 prices, or counteracted climate policy goals. The managing director of the Paritätischer Gesamtverband, Ulrich Schneider, said: “Any climate policy will fail with a bang if we don’t take people with us.” When asked whether a premium based on income levels would not be fairer, Schneider said that grading would be very complex to implement: “It would be the death of the good.”
The study came to the conclusion that a per capita redistribution could still be implemented in this legislative period “with little bureaucracy, cost-effectively, legally certain” and in accordance with data protection. A “climate bonus” could flow to the citizens via existing payment channels. Possible payment methods would be the monthly payroll tax statement, the monthly transfer of statutory pensions, the monthly payment of basic security and the annual tax return. The study provides for the establishment of a digital “climate bonus register” at the Federal Central Tax Office. On the basis of the tax ID, this can ensure the recording of almost all those who are authorized to receive it. The premium should be paid monthly.
Payout could start in 2023
Christoph Bals, Political Director of Germanwatch, said that there is now a concrete implementation concept for a climate bonus. Payment could begin as early as 2023. The coalition agreement between the SPD, Greens and FDP does not specifically state when climate money or a bonus should come. It is said that a “social compensation mechanism” should be developed beyond the abolition of the EEG levy, this is also called climate money. The Greens had campaigned for “energy money” in their election manifesto.
The climate policy spokesman for the FDP parliamentary group, Olaf in der Beek, said: “We must now quickly get the climate money on the way so that the acceptance of climate protection measures is not endangered despite a rising CO2 price.” Green climate politician Lisa Badum said: “One thing is certain: the perfect model with 100% visibility for the public and zero percent bureaucracy will not exist. It is particularly important that the ministries quickly agree on a process so that the climate money in 2023 can be paid.” SPD parliamentary group leader Miersch, on the other hand, pointed out the planned abolition of the EEG surcharge.
The study was commissioned by the German Climate Alliance, the German Nature Conservation Ring, the German Association for the Environment and Nature Conservation, Germanwatch, the Institute for Church and Society of the Evangelical Church of Westphalia and WWF Germany.