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Increasing existing taxes on petrol, diesel, heating oil and natural gas is the 鈥渕ost practicable鈥� way of introducing a price on CO鈧� emissions in transport and heating to help Germany reach climate targets, Germany's environment minister Svenja Schulze told journalists at a press event in Berlin. However, she added that CO鈧� pricing is 鈥渘ot the silver bullet鈥� and must be introduced in close coordination with other climate action measures. 鈥淚f we have a good climate package for the transport sector on the table, we have to regulate less with CO鈧� pricing,鈥� said Schulze. The Social Democrat (SPD) based her assessment on the findings of she unveiled at the event. 鈥淭his is an uncomplicated way to make possible a speedy start for CO鈧� pricing and have quick climate action effects,鈥� said Schulze. The three reports have similar findings and show that with such a CO鈧� pricing, low-income households on average would be hit especially hard, so they suggest a 鈥渃limate premium鈥� of 75 euros-100 euros annually to pay back revenues to households. The reports by the German Institute for Economic Research (DIW), Green Budget Germany (贵脰厂) and the Institute for Macroeconomics and Economic Research of the Hans B枚ckler Foundation (IMK) assess the introduction of a CO鈧� price step by step, starting with a moderate price. The researchers struggled to put a concrete CO鈧� saving tag on the introduction of CO鈧� pricing, due to uncertainties such as price volatility of oil on the world market.

Schulze said she had not decided on any concrete model for CO鈧� pricing yet. She said the reports鈥� findings will be used as input for the debate within the government鈥檚 鈥渃limate cabinet鈥�, which plans to focus on CO鈧� pricing in its next meeting in mid-July. Ahead of the meeting, the government will also receive an expert opinion by the German Council of Economic Experts (Wirtschaftsweise). German Chancellor Angela Merkel鈥檚 conservative CDU/CSU alliance is struggling to find a common position on CO鈧� pricing, especially in the transport and buildings sectors. After shying away from the debate for a long time, the governing parties and Merkel herself have recently announced a willingness to look into CO2 pricing as way to reach Germany鈥檚 2030 climate targets. The concrete concept, however 鈥� whether it be a new CO鈧� tax or a cap and trade system 鈥� is heavily disputed. The CDU/CSU alliance has so far rejected introducing a CO鈧� price by raising taxes. Merkel herself floated the idea of 鈥渁 coalition of the willing鈥� among European Union countries and announced that the government will make crucial decisions on climate action in September.