Germany Backs CO2 Pricing, Resists Macron's EU Proposal
Germany has expressed its support for CO2 pricing as a means to reduce emissions cost-effectively, but it remains reluctant to join additional European CO2 pricing systems beyond the EU ETS. Meanwhile, France's President Emmanuel Macron has proposed a minimum carbon price to accelerate the shift towards renewable energy.
A reformed EU emissions trading system could make coal power plants unprofitable if carbon prices double by 2021. This has been welcomed by environmental minister Svenja Schulze (SPD), who supports the idea of a CO2 price for sectors not directly covered by the existing EU ETS system. However, Germany's new Grand Coalition between the SPD and CDU is unwilling to embrace a greater carbon price mechanism or join Macron's new coalition.
Macron believes a carbon price floor on the European level is necessary to reach Europe's long-term objective of becoming carbon neutral. In the UK, a robust CO2 pricing system has led to a significant reduction in coal's market share, demonstrating the effectiveness of such measures. Nevertheless, the CDU's Hermann-Josef Tebroke rejects the French proposal for a price on CO2, indicating the division within the German coalition government on this issue.
While Germany acknowledges the benefits of CO2 pricing, it is unwilling to join additional European CO2 pricing systems beyond the EU ETS. Macron's proposal for a minimum carbon price has been met with resistance from the German coalition government, highlighting the ongoing debate surrounding climate policy in Europe.
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