Berlin (dpa) – The carbon tax on fossil fuels needs to increase significantly by the end of the decade, according to a top German environment official, who warned that otherwise society would pay a high price.
Experts say the carbon tax will only have a «steering effect» when it is higher than 100 euros (121 dollars) per ton, the president of the federal environment protection agency, Dirk Messner, told Deutschlandfunk radio station.
As of January 1, under Germany’s carbon tax, every ton of carbon emitted by burning fossil fuels costs 25 euros, making petrol is more expensive, for example, which has an impact on drivers’ behaviour.
Lower carbon taxes effectively subsidize fossil fuels which cause a great deal of damage, he said.
The carbon tax on oil and gas is currently 25 euros per ton and this is set to reach 55 euros by 2025, under the German government’s plans.
As compensation, Messner suggested a form of climate payment to reimburse households for some of their emissions that would be transferred directly to their bank account, a move that would be more visible than a general reduction in electricity prices, he said. However, lowering the electricity price could also be a way forward, Messner said.
The carbon tax was also debated on Friday evening by Germany’s Green Party, currently holding a party conference.
Delegates backed a proposal by the executive committee to raise the carbon tax to 60 euros earlier, by 2023. A proposal to let it rise faster and higher did not gain the backing of a majority.