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CO2 tax: Industry receives 100 million euros more per year

2021-03-31T14:13:26.128Z

A new CO2 tax increases the production costs of many industrial companies. Companies that are in global competition now receive aid from the state - but above all they have to invest it in green technologies.



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Cement works in Bernburg: Aid for additional costs due to the CO2 price

Photo: Carsten Koall / Getty Images

German industry is to be relieved more of the new CO2 levy on fossil fuels than originally planned.

The Federal Cabinet decided on the so-called Carbon Leakage Ordinance.

According to the Ministry of the Environment, companies that consume a lot of electricity and are in international competition will receive money from this.

The relief amounts to a total of around 270 million euros for 2021 and around 330 million euros for 2022.

On average, this is almost 100 million euros more than planned in the last draft regulation.

The aid will primarily benefit around 1,500 medium-sized companies from the steel, chemical, paper or cement industries that are still heavily dependent on gas or oil.

In the future, you can apply to the state for assistance.

Because of the competition from abroad, these companies could not recoup their climate protection contribution by increasing sales prices, the government stated.

This is to prevent companies from going bankrupt or migrating abroad.

As a result of the CO2 tax, the prices for fossil fuels have risen, for gasoline and diesel by seven to eight cents per liter, for heating oil by eight cents.

The fee is expected to increase annually.

By 2024, the state wants to raise 40 billion euros, some of which will be used for the compensation of certain companies that has now been decided.

In return, the companies are obliged to invest at least 80 percent by 2022 and at least 50 percent of the aid in the climate protection of their companies by 2023 and 2024.

There should be transitional regulations for smaller companies.

The national fuel emissions trade, which started at the beginning of this year, will trigger a steering effect towards climate-friendly technologies and products, said Environment Minister Svenja Schulze (SPD).

But it is important that Germany remains an attractive business location: "Migration abroad would not benefit anyone, not even the climate."

The ordinance still has to be approved by the Bundestag.

Since the compensations constitute aid, the European Commission must also approve them.

ime / dpa / Reuters

Source: spiegel

All business articles on 2021-03-31

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