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15 Jan 2024, 13:25
S枚ren Amelang

German finance minister says government won鈥檛 return CO2 income to citizens before 2025

Neue Osnabr眉cker Zeitung

Germany鈥檚 coalition government will not follow through with its original plan to return revenues from carbon price to citizens as compensation for rising CO2 prices in the current legislative period, according to finance minister Christian Lindner, head of the pro-business Free Democrats (FDP). Lindner said the per capita climate bonus (Klimageld), which the government had agreed on in its coalition treaty, will not be technically feasible before 2025. 鈥淲hether we politically reorganise the funding landscape in this direction will have to be decided after the next election,鈥 he聽聽the Neue Osnabr眉cker Zeitung. The government increased the national CO2 price for transport and heating fuels from 30 to 45 euros at the start of the year 鈥 a more drastic increase than planned 鈥 in response to a聽constitutional court ruling,听which led to a shortfall of 60 billion euros largely earmarked for climate policy. In reaction to the increase, some聽economists,听NGOs and consumer advocates intensified their calls for the implementation of the climate bonus.

Lindner explained that the government鈥檚 CO2 revenues are already being spent on other climate measures, such as subsidies for climate-friendly heating systems, building renovations, green steel production or charging stations for electric cars. 鈥淏ecause one household receives funding for a heat pump, several hundred others cannot receive climate money that year,鈥 Lindner said. 鈥淵ou can't spend the money twice. The climate money would therefore replace the subsidies we have now,鈥 he said, adding that a decision to change the current system would have to be made after the next general election. Some other government party policymakers had previously聽cast doubt聽on whether the bonus payments could be realised given that the constitutional court ruling had 鈥渟everely restricted鈥 the government鈥檚 financial scope.

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