Posted 12/15/2023, 12:34:58 PM
German Parliament Approves Higher Carbon Emissions Levy to Resolve Budget Crisis
- German parliament approved raising the carbon emissions levy from 30 to 45 euros per ton starting next month
- Increase is part of a deal to resolve a budget crisis caused by a court ruling annulling repurposed COVID funds
- Higher carbon price expected to impact gasoline, diesel, natural gas and heating oil prices
- Increase aims to bolster the climate and transformation fund affected by the court ruling
- Other measures to plug budget gap include reducing subsidies, slightly lowering some ministry spending, and using privatization revenue for railway modernization