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Germany鈥檚 government should soon introduce a so-called climate premium (鈥淜limageld鈥�) to return the revenues from the national carbon price on transport and heating fuels to citizens, said a group of civil society groups including Friends of the Earth Germany (BUND) and Germanwatch. 鈥淲ith a climate premium, CO2 pricing can be developed into an effective and socially just instrument for climate action,鈥� said BUND managing director Antje von Broock. An annual per capita payment 鈥� the same amount for each person 鈥� means that people with lower and middle incomes are relieved more financially, as they statistically have a smaller CO2 footprint. At the same time, the rising CO2 price encourages the switch to climate-friendly means of transport and heating. The premium could be introduced with little bureaucracy, cost-efficient and legally secure, said the NGOs based on a report by the University of Administrative Sciences Speyer.

In its coalition agreement, the new government said it would develop a 鈥淜limageld鈥� as a social compensation mechanism to increase acceptance of the carbon price, but did not give any details or timeline. A major hurdle for its introduction is the question of how to get it to all citizens. The NGOs propose to set up a 鈥渃limate premium register鈥� with the tax authorities. 鈥淭he majority of those entitled can be identified and entered in the climate premium register without an application procedure,鈥� said the report.