All questions Overview: What is a price for CO2? What would the emissions trading? Where are the problems? How does a CO2 tax? What to do with the revenue?
price Ranges of CO2, in order to reach the climate goals? What will the Federal government? What a price for CO2?
Behind the idea of a CO2 price has a simple economic principle: Who is responsible for the emission of greenhouse gases responsible, must pay. Because climate-damaging behaviour is more expensive, emissions will decrease. In the ideal case, the policy saves the hassle for the climate protection further limits or prohibitions adopted, such as carriers or devices based on specific energy. If the CO2 were to be introduced the price across the Board, he would also act more comprehensive than the rules.
in Principle, CO2 could be collected-the price in the Form of a tax, as you are asking about the Federal environment Minister, Svenja Schulze, and many climate economists. Also conceivable is an emissions trading system is preferred by a significant Share of the CDU. Although there is already the EU emissions trading system. He is regarded as the most important Instrument of European climate policy. But it relates not only to energy companies, industry and, since 2012, also the intra-European air transport – and he has not worked particularly well in the past.
CO2-tax : © Carsten Koall/AFP/ climate policy : Informed you. CO2 tax : Important, but not sufficient in CO2-control : climate protection no class is allowed to question
climate economists have long argued, to take other emissions, with a CO2 price. However, until Recently, the idea had political as well as no Chance. This is about to change for three main reasons: Germany missed the targets of its climate. The pressure on politicians to do more is increasing. And slowly the climate of political neglect is expensive, especially in the sectors subject to emissions trading, such as transport, buildings and agriculture. The Federal government has committed to reduce the emissions from these sectors by 2020 in comparison to 2005 by 14 percent, but you will not achieve this goal very likely. Then penalty payments will be due. Finance Minister, Olaf Scholz, said plans around 300 million euros alone in the next three years, but it could also be much higher amounts.
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What would the emissions trading?
The principle is attractive: In a first step, the policy determines an upper limit for the emission of greenhouse gases. Then securitises the right to blow exactly the specified amount in the air, and distributes or sells it in the Form of certificates to the Issuer. Who receives more allowances than it needs, selling the Surplus – and who needs more buys. In the trade, a price is formed. If it is cheaper to avoid CO2 emissions than to buy allowances, will be invested in climate-friendly technology and theoretically where it is cheapest. Thus, climate protection is efficient. The scarcer the certificates, the higher the price and the more likely it is worthwhile to replace dirty plants with clean ones.
In theory, emissions trading has a further striking advantage: Because it operates with a fixed upper limit, you can goals, through him, the climate quite exactly to achieve – provided that it really captures all of the emissions. The limit also drops to a reliable, predictable way, constantly, that gives the companies the certainty they need to invest in climate-friendly. This is important, because investments in renewable energy, low-CO2 powertrain technologies or climate-friendly traffic infrastructure in the very long term. Who builds a coal-fired power plant, in addition to harm the climate for decades to come.
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the problems are Where?
In practice, the EU has not worked-emissions trading. Because there were to many certificates, was your price over a long period of time far too low to initiate friendly investments.
Basically, it is conceivable that the European certificate trading in the transport and buildings to expand, the the debate is currently. The need for action would be: In Germany, transport is the third largest emitter with a share of almost 18 per cent of the total greenhouse gas emissions, and its emissions have not fallen since 1990. But the devil is in the Detail. An example: In the previous emissions trading, the end-users of energy to purchase the certificates, such as power plant and factory operators. Who should but must, in the transport sector, emission rights buy: refineries? Tank? The Motorist? To decide and to integrate the new rules into the existing System is not trivial and would probably take a long time. “It would be much too complicated to expand,” says Claudia Kemfert, head of the Department of energy, transport and environment at the German Institute for economic research. “There was a test a few pilot projects at the municipal level, but not all of the work.”
The low certificate price is another Problem. The transport sector in the EU emissions trading system would be included, he would buy probably just, writes of the Council of experts for environmental questions in a special report for the Federal government. “This acquisition would not, however, lead to additional emission reductions in the same amount in other sectors, but instead, the (…) high certificate income reduce.” The climate policy effect would be equal to zero. Only in the long term, the change might, for example, by the increasing use of electric, if they are operated with clean electricity.
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How does a CO2 tax?
A CO2 tax works according to the same mechanism as the emissions trading scheme: emissions will be more expensive and reduce. The price rises continuously and reliably, investments in climate-friendly technology will be steadily profitable. However, instead of an upper limit for the emission of greenhouse gases, to determine, determines the policy in this case is the price – this can make it more difficult to reach emission targets accurately. Presumably, therefore, it would be for practical reasons, it makes sense, first of all, with a rather low tax rate to start, and to increase this. At the Moment, tax rates of about 20 or 40 euros per Tonne of CO2 are in the conversation, which would increase in the future, probably more. In the ideal case, a number of European countries were to introduce such a tax.
However, the CO2 tax has an ideological and a practical Problem. The ideological: Large parts of the CDU and the FDP want to introduce for reasons of principle, not a new tax. The Grand coalition has agreed not to increase the tax burden for the citizens. This means at least that any tax would have to increase by reductions elsewhere to offset.
The practical Problem: energy is charged in Germany already by a lot of different taxes that have little to do with the CO2 content of the respective energy carrier. For light fuel oil a charge of 23 euros per Tonne of CO2, for natural gas of 30 Euro and for thermal coal of 3.50 euros, Felix Matthes, research coordinator energy – and climate policy, Öko-Institut writes, in a contribution to the Background energy and climate in the daily mirror. “Gasoline is just under 290, Diesel with 180 and natural gas with 75 euros per Tonne of CO2 applied to”, a current is again over the emissions trading, the electricity tax and various levies, with about 90 Euro per ton of CO2.
Matthes, you could reach in the electricity sector, “serious emission reductions” already with a CO2-price of € 50 per Tonne. In the area of buildings is around 80 euros would be necessary. In the traffic, but “will set the significant emissions reduction effects are rather clear in the three-digit level of CO2-pricing” – i.e., from about 150 euros per ton. A CO2-tax would have to unify the existing tax rates first, and then gradually lifting, says Brigitte Knopf, Secretary-General of the Mercator Institute on Climate Change and depending on the climate effect of the individual energy sources and how different tenants, property owners and motorists respond to price changes.
climate economist Ottmar Edenhofer, Director of the Potsdam Institute for climate impact research, therefore call for a fundamental Reform of the energy tax system, which could also take into account social aspects. “The tax affects the CO2 emissions, we need to have differentiated tax rates,” says Matthes from the Oeko-Institut. “That would be possible, is a great advantage of the CO2 tax compared to emission trading.” However, a large tax reform in Berlin is currently not an issue. “This is something that is usually decided in the last nights of coalition negotiations,” says Matthes. According to the current condition, that would be about one and a half years. “But the debate must be held now.”
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what to do with the revenue?
the revenue could be reduced other taxes – electricity tax, for example. The money could also be used to a climate-friendly transport system, for example, by setting up Bicycle lanes, charging points for electric cars and the railway, as well as the public transport system strengthens, especially in the country. In the building sector, the policy could pay premiums for climate-friendly heating boilers or better insulation.
One could also pay a portion of the revenue to the citizens. It is currently being discussed very much – also because it increases protests against tax, as in France, wants to avoid. “All are agreed that it is necessary to distribute money back,” says climate scientist button. “And there is a consensus develops that a Pro would be head-back payment of a portion of the revenue is probably the best solution.” Thus, poorer households, which do not usually cause so many CO2 emissions that would be made better: they are getting more money back than you pay per year in CO2 taxes. Others, however, whose lifestyle causes higher emissions of greenhouse gases, it would pay for itself.
Other countries show that it could work. Switzerland, for example, pays back a portion of the tax revenues directly to the citizens. In 2018, the delivery to an amount of about 80 Euro for each. The canadian province of Alberta is investing in climate-friendly infrastructure. And Sweden is leaving the money in the budget, cuts but in return other taxes.
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a CO2 price is Sufficient to reach the climate goals?
Rather not for various reasons. In the transport of the CO2 price would have to be very high to have any effect on the climate. Therefore, he should be at least accompanied by other instruments, such as, for example, the Expansion of public transport. Better still, a shift in Traffic, the power of the motorized, fossil fuel-based individual transportation fuels obsolete. In the building sector, tenants have little impact on investment – but because they bear the largest part of the heating and hot water costs, the owners have little incentive to clean technology. And in some industry sectors climate-friendly production technology should be developed, but for this, huge investment sums are needed.
A “courageous” CO2-price is overdue, write researchers of the Wuppertal Institute for climate, environment and energy. But in addition to binding climate targets “in all areas” necessary, “in order to exploit the potentials and to generate a corresponding pressure to act”. Felix Matthes from the Oeko-Institut puts it, Vice versa: “A CO2-price is not everything. But without him everything is nothing.”
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What the Federal government wants?
About you fighting. The Ministry of environment would like to have a CO2-price that is used at the same time, climate protection and social hardship. State revenues should not increase. The proposal, the EU-emission trading sectors, such as transport, to extend the Ministry considers to be legally “not feasible,” and “from a professional point of view does not make sense”.
It would push the “climate protection on a long bench, if we shift to Brussels,” said a spokesman for the Ministry of the environment last Monday at the Government press conference. In addition, the emissions trading would have less impact on the citizens as a CO2 tax, and would also Comp a ensation.
a tax? The speaker does not want to commit himself. Large parts of the CDU in favour of the model of emissions trading critics maintain that for a pure mesh to move the Problem further into the future. In addition, as a CO2-price to be arranged, will decide the climate Cabinet. This will consult in July on the topic. The Ministry of environment intends to submit before the summer break a concept.
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