Brussels (Brussels Morning) Germany supports the EU’s planned changes to carbon market policies, according to a document that has not been released to the public.
In the document detailing Germany’s stance on the European Commission’s proposed climate policies, the German government expresses support for new carbon pricing rules and the termination of free carbon emissions permits for airlines, Reuters reported on Sunday.
The EC is to propose a package of changes to the bloc’s climate policies in mid-July in order to cut greenhouse gas emissions faster than originally planned. The EU plans to cut emissions at least 55% by the end of the decade compared to 1990 levels.
As part of the package, the EC intends to change the rules of the EU carbon market and introduce an import levy on CO2 costs. EU member states and the European Parliament will have to approve the package before it can come into effect.
Separate carbon market proposed
In the document, Germany supports the Commission’s plan to set up a separate carbon market for heating in buildings and transport, adding that “the long term goal should be to have a uniform cross-sector carbon price in the EU”.
Earlier this year, Germany introduced a CO2 levy for heating suppliers and transport fuels, initially set at 25 euro per tonne. The push to expand the system at the EU level has run into resistance from some EU member states and MEPs who warn that it could increase household fuel bills.
Germany pointed out that EU governments will have to invest resources to address negative social effects of the move, especially on low-income households.
According to current carbon market rules, airlines and industry get some carbon permits for free, which protects them from rising carbon prices. Germany notes in the document that free permits should be extended “to an appropriate extent,” but not for aviation.