Germany鈥檚 climate law and national emissions trading system clear last legislative hurdle
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The council of federal state governments (Bundesrat) has greenlit聽Germany鈥檚 Climate Action Law聽and the聽planned national emissions trading system for transport and buildings, clearing the last legislative hurdle. The Bundesrat also agreed to聽plans to increase the air traffic tax. As the federal parliament (Bundestag) has already adopted these, the German president can now formally sign all three bills into law. However, other parts of聽the climate package Chancellor Angela Merkel鈥檚 government decided in September聽are being held up. The Bundesrat called for setting up the so-called mediation committee with the Bundestag to debate聽planned tax changes, such as those supporting the energy-efficient modernisation of buildings, increasing the commuting allowance and decreasing the VAT on train tickets. The latter is planned for January 2020. States聽had criticised聽the distribution of costs between the federal, state and municipal levels. Environment minister Svenja Schulze (SPD) had cautioned against delaying key elements of the climate package聽: 鈥淚t's important to me that the reduction in rail fares is not held up.鈥 State premiers, such as Daniel G眉nther (CDU) of Schleswig-Holstein, said they hoped a solution could be found by the end of 2019.
The German government in September聽adopted a comprehensive climate package to help reach the country鈥檚 2030 targets. Over the coming months, the decisions must be implemented, mostly through legislative amendments or newly created laws. Among the most contentious elements are the coal exit law and renewables expansion legislation.