Those who emit CO2 should pay for it (Handelsblatt)

Following the amendment of the Climate Protection Act, Germany is to reduce its greenhouse gas emissions more significantly by 2030 than previously planned and achieve climate neutrality as early as 2045 instead of 2050. In a guest article in the "Handelsblatt," the members of the German Council of Economic Experts, including Prof. Volker Wieland, explain the economic and societal changes that this will entail and show how this change can be shaped as efficiently as possible.

According to the Council members, a central role must be played by the uniform and ambitious pricing of CO2 emissions. "It should be anchored as a guiding instrument of climate policy, initially in Germany and as quickly as possible at the European level."

In order for CO2 pricing to fully develop its incentive effect, the members of the Council of Experts advocate completely abolishing the EEG levy, which is associated with extreme bureaucracy, and reducing the electricity tax to a minimum.

To help innovations achieve a breakthrough, the Council members believe that companies' access to venture capital is crucial. Therefore, Europe must strengthen its financing ecosystem so that climate risks and opportunities can be properly priced into markets. In a joint climate club with important trading partners, the EU should also continue to drive forward climate policy.

Handelsblatt: "Wer CO2 ausstößt, soll dafür bezahlen"