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As Germany鈥檚 election campaign heats up, the debate about the country鈥檚 renewables levy (EEG surcharge) 鈥� a surcharge electricity consumers pay with their power bill to finance renewables support 鈥� is gaining new momentum. The government coalition has already decided to use revenues from the new CO2 price in transport and heating, as well as further federal budget funds to help lower the levy. Economy minister Peter Altmaier has repeatedly said he would like to see the levy abandoned fully and financed through the budget instead.

The Climate Neutrality Foundation has now just that. The national carbon price should be raised faster, with a floor price of 80 euros from 2025, and in return the EEG levy should be abolished by the same year. The foundation鈥檚 proposal is backed by from the Institute for Applied Ecology (脰办辞-滨苍蝉迟颈迟耻迟). Meanwhile, several NGOs, including Germanwatch and Friends of the Earth Germany (BUND), which doesn鈥檛 properly address social and ecological issues. The organisations argue that by Green Budget Germany (贵脰厂) shows alternative measures such as a 鈥渃limate premium鈥� for citizens would be fairer. With the premium, the revenues from the CO2 price would be paid back to citizens.

Earlier in the week, a group of researchers of the Ariadne project had said that with the right reform of environmental taxes and levies, polluters could be made to pay and citizens relieved. German politicians, researchers and the public have long debated a complete overhaul of German energy taxes and levies and its effects on fuel prices, low-income households and state revenues. After much political wrangling, the current government coalition introduced a CO2 price for transport and heating fuels at the beginning of this year, which will steadily rise over the coming years. Parts of the revenues will be used to lower the renewables levy that power consumers pay with their bills.