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German Government to Set Carbon Price of 30 Euros A Tonne in Transportation, Housing

German government delegates are discussing the introduction of a carbon emission price of approximately 30 euros a tonne for the transport and housing markets, three people accustomed to the discussions said Thursday.

The German government is preparing for all-night dialogues on a new climate policy that may determine whether Berlin is serious about engineering a standard shift in Europe’s largest economy or wants to make a token show of going environmentally friendly.

The ruling alliance has set itself a Friday deadline to present a package deal of measures that are likely to embody a carbon-pricing initiative to cap the use of fossil fuels in Germany, where the Greens party is enjoying a rise in support.

The starting price for carbon emissions in transportation and housing ought to be approximately 30 euro per tonne and put it on the same level as the existing price that industrial corporations and energy stations have to pay through the European Union certificate trading scheme, three people acquainted with the dialogues said on condition of anonymity.

For car drivers, such a CO2 price in transportation would imply surcharge of some 10 euro cents per liter gasoline or diesel, along with VAT, the sources stated.

The chief of Germany’s Environment Agency, Dirk Messner, stated earlier this week that an ambitious climate protection package ought to embody a starting carbon price of 40 euros a tonne, growing to between 150 and 180 euros over the subsequent decade.