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Germany鈥檚 economy and energy minister Peter Altmaier is sceptical of the idea of introducing a tax on CO鈧�, he said on聽Maybrit Illner, . 鈥淎s far as the CO鈧� tax is concerned, I say: I am not convinced of it, and I also believe that it would be wrong to rush a decision." While the federal government is currently discussing 鈥渁ll possibilities,鈥� the disadvantages outweigh the positive effects of such a tax, he said, referring to the聽yellow vests protests in France. 鈥淭here will be winners and losers. [鈥�] In the end, we must not put a heavier burden on either the economy or the people,鈥� he said, adding that it would require a 鈥渉uge bureaucratic effort鈥� to introduce a CO鈧� price in a socially fair way 鈥� one that does not overburden low-income households, especially those in the countryside. The minister called emissions trading the most efficient solution from an economic perspective. Altmaier also said Germany must decrease its levy to support renewables expansion, and abolish the electricity tax.

After shying away from the debate for a long time, the governing parties and Chancellor Angela Merkel herself have recently announced a willingness to look into CO鈧� pricing as a means of reaching Germany鈥檚 2030 climate targets. There are聽many ways a price on carbon could be implemented, and different stakeholders favour different models, such as a cap-and-trade approach or a carbon tax. Several ministries have commissioned studies to define the design of such a scheme. Last week,聽politicians started to pitch ideas for the design of CO鈧� pricing in Germany聽and the government鈥檚 climate cabinet is to discuss the subject in July.