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The Bavarian Christian Social Union (CSU) 鈥� part of Chancellor Angela Merkel鈥檚 alliance of centre-right parties 鈥� is sceptical regarding the introduction of a new CO鈧� tax. The party is calling instead for a reduction in existing energy taxes, such as the electricity tax, to steer Germany towards a low-carbon future. 鈥淲e as CSU are not prepared to introduce a form of CO鈧� pricing which puts an additional burden on citizens,鈥� said Georg N眉脽lein, deputy head of the CDU/CSU parliamentary group, at a press briefing in Berlin. N眉脽lein said the CSU would prefer a European solution, such as expanding the EU Emissions Trading System (ETS), as its 鈥渋nstrument of choice." However, should a national solution be necessary, 鈥淚 propose to check all environment and energy taxes for their relevance to CO鈧�, and reduce taxes where needed,鈥� said N眉脽lein. 鈥淔or the Union [CDU/CSU alliance], ecologic tax reform means tax reduction reform.鈥� N眉脽lein said a resulting economic stimulus and innovation drive would finance part of such a reform. But climate action also 鈥渉as to play a different role in federal budget planning in the coming years,鈥� N眉脽lein said. 鈥淎part from the energy and climate fund, the current budget positions do not do justice to the issue.鈥�

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 Chancellor Angela 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.

N眉脽lein flat out rejected the draft climate action law presented by Social Democratic environment minister Svenja Schulze earlier this year. Instead of introducing 鈥渙ne big climate law鈥�, the Conservative said, the individual climate challenges should be dealt with 鈥渟tep by step:鈥� first the coal exit legislation, then a package for the buildings sector.聽