The German government on Wednesday approved a pricing system for CO2 emissions as well as a ban on the installation of new oil-fired heating systems after 2026.
Houses that could not be furnished with gas or district heating or could not be heated by renewable energies would be excepted from the ban.
Furthermore, those who have their old oil-fired heating system replaced by a more climate-friendly alternative would be rewarded with an "attractive exchange bonus."
On Wednesday, the government also adopted a law on a national CO2 pricing system. As of 2021, the emission of one ton of CO2 is set to cost 10 euros (11.12 U.S. dollars).
By 2025, the CO2 price per ton is scheduled to rise to 35 euros. From 2026 onwards, the carbon price would be determined by an exchange market for carbon certificates, but would be capped at 60 euros.
The CO2 price set by the German government was "too low and does not extend far enough into the future to provide sufficient guidance and the necessary security for investment," the Potsdam Institute for Climate Impact Research (PIK) criticized immediately after the plans became known.
Last week, the German government already presented first draft laws on various carbon saving measures, such as decreasing taxes on rail travel and increasing taxes on flights as required by the national climate action plan.
With its climate action plan, the German government aims to ensure that the country achieves its climate targets set for 2030.
Editor:Iris
