Contents page 1 — 100 Euro Christmas money by Minister of Finance page 2 — withdrawal of an Eco – or climate bonus On a page

20 years Ago, led the then red-green Federal government read the Eco-tax. Why, from your point of view now, the CO2-tax should come to explain to Claudia Kemfert and Stefan Bach of the German Institute for economic research in this guest post.

Too much Eco in the Eco-tax, as the red-green government introduced in April 1999. You increased the energy taxes, especially on petrol and Diesel, and introduced a tax on electricity. The income you put into the pension insurance, in order to stabilize their finances and to reduce the contribution rate.

The fuel taxes were increased to 15 cents, plus tax, what they had wrested from the Green of the car Chancellor Gerhard Schroeder iron. In the case of Gas and heating oil, but there were only lower surcharges and the electricity remained expensive with a good two cents moderate. Economy and low-wage earners should be protected. In addition, there were tax reductions for industry and agriculture, as well as for enterprises with high energy consumption. The eco-tax increases could have only a limited steering effect. Only in traffic, they had a little, but even in this area a maximum of five percent of the reduction in emissions are due to the fact.

At the same time, there was much discontent over the tax increases, since, in the zero years, Oil prices rose sharply. Since 2003, allowed, therefore, the eco-tax rates unchanged. Since the introduction of the European emissions trading as of 2005, there are for energy and industry, emission reduction targets, to be achieved through a CO2 price. However, the steering effect also remained low, because too many certificates have been awarded and the resulting CO2 price remained low. After all, a targeted funding has driven the Expansion of renewable energy since the introduction 20 years ago. You can, however, be a political issue led to a strong increase in the levy on the price of Electricity, which is contrary to today, the targets of the energy turnaround.

The Ecotax was a social policy success

Like your environment – and climate-political balance rather mau – financial and social policy and the ecological tax reform was a success. Today it is financed Federal grants to the pension insurance of EUR 20 billion in the year. Without this money, the pension contribution rate today would be around 1.2 percent higher. And also the pensioners have benefited from it, because through pension adjustments as a result of the reductions in contributions paid today are 1.5 percent higher.

was A flaw in the Reform that of the eco-tax billion only subject to pension insurance for workers, their employers and the pensioners ‘ benefit. Civil servants and the self-employed have none of it. The numbers, however, not the many “non-insurance benefits” with that the great coalition increased in years, vigorously, by deeds brings with it new pension welfare among the people. Were charged to low earners hit by the eco-tax increases, relatively strong and only a little pension contributions, pay or pension.

20 years later, in times of energy turnaround, the Coal phase-out and diesel scandals, the Eco – or better, a CO2 tax again prominent on the Agenda. Climate protection is becoming increasingly urgent, because the emissions are rising and global warming continues unabated. The climate targets in Germany to meet in accordance with the agreement of the Paris climate agreement needs to be decarbonised the energy system in the long term, completely. Germany’s goals, its voluntary emission reduction up to 2020 to miss. And if it is not reversed, even the targets up to 2030.

energy taxes to fundamentally reform

one needs a market-based instrument, so that the energy prices will give the ecological reality. It doesn’t exist for the vast areas of energy consumption, which are not included in the emissions trading, especially Building heating and transport. For 30 percent of the total CO2 emissions. Also, the electricity sector needs to make a significant contribution to emission reductions. The energy transition with the aim of increasing the share of renewable energies in electricity production of nearly 38 per cent to at least 80 percent by 2050.