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Germany’s CO2 tax is set to rise in 2025, pushing heating and energy costs higher for both consumers and businesses.
Germany’s CO2 tax is set to increase from the current 45 euros a tonne to 55 euros at the turn of 2025, driving up heating and energy costs for consumers and businesses. [emphasis, links added]
The hefty rise means the CO2 tax will almost double in just two years. In 2023, the carbon tax was 30 euros [$32] a ton.
But it doesn’t stop there, reports Blackout News. The CO2 tax gets taxed by the value-added tax, which is currently 19 percent.
“Households and businesses that rely on petrol, diesel, heating oil or natural gas are facing growing financial challenges,” writes Blackout News.
“A liter of petrol will be 4.3 cents more expensive due to the CO2 tax, diesel will rise by 4.7 cents per liter. Heating costs will also rise dramatically. A kilowatt hour of gas will become a further 0.21 cents more expensive, which means a total increase of 1.21 cents compared to the time before the CO2 tax. Heating oil costs 17.5 cents more per liter – an increase that affects many households.”
The sharp increases will certainly bode ill for the current SPD-Greens-FDP coalition government – which undergoes a vote of no confidence later this month in Parliament.
A no-confidence vote will lead to the dissolution of parliament and thus a new election within 60 days of the vote.
The pain at the gas pumps and from higher utility bills will make the current coalition government partners even more unpopular.
But whether a new government led by Friedrich Merz (CDU) will change anything remains highly doubtful. Only the opposition AfD party has staunchly opposed the CO2 tax. Currently, Merz’s CDU party is well ahead in the polls.
Sixty-Five Euros Per Ton In 2026
The CO2 tax is set to rise to 65 euros [$68] a ton in 2026, making the energy cost gap between Germany and other countries potentially unsustainable.
Already there’s a growing dissatisfaction among German citizens and businesses as energy prices skyrocket into the stratosphere.
Meanwhile, the Trump administration has signaled a strong interest in making energy affordable again in the USA.
Who’s profiting from the CO2 tax? The government.
According to Blackout News:
“More than 18 billion euros flowed into the coffers, including 10.7 billion euros from national emissions trading for heat and transport. Compared to 2022, revenue in this area increased by 67 percent. Revenue from European emissions trading also increased by 12% to €7.7 billion.”
Read the entire article here (German)
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The post Germany’s CO2 Tax Set To Rise Again In 2025, Delivering More Energy Pain For All appeared first on Energy News Beat.
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