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A decision by Germany in favour of emissions trading for transport and buildings would be a special approach - all other EU states with CO2 pricing in addition to European certificate trading are opting for a tax solution.

Berlin (July 12, 2019). More and more countries in Europe and around the world are introducing CO2 prices. However, Germany would be taking a special path if it were to introduce additional emissions trading in the transport and buildings sectors. Other EU countries are unanimously opting for tax solutions. These are the most important findings of a new comparative study by the development and environmental organisation Germanwatch, which was published today ahead of the presentation of the special report on CO2 pricing by the German Council of Economic Experts.

"Germany is following a trend that can be observed in Europe and worldwide if the German government now introduces CO2 prices in addition to emissions trading," says Linus Herzig, CO2 pricing officer at Germanwatch and one of the authors of the study. "CO2 prices are already an important part of the climate policy toolbox of many countries in Europe and in the G20. So there is no question of a national go-it-alone."

It is also striking how few countries have opted for an approach based on certificate trading when it comes to CO2 pricing in the transport and buildings sectors. Herzig: "All twelve EU states that have implemented additional CO2 pricing instruments alongside European emissions trading have opted for a tax solution." In more and more countries, the socially acceptable design of their own CO2 pricing systems is also playing a major role.

Oldag Caspar, Team Leader for German and European Climate Policy at Germanwatch and co-author of the study, adds: "The German government should at least decide on a CO2 price in the transport and buildings sectors this year and - like its European partners - opt for a tax reform. We also strongly recommend that the German government accelerate talks with EU neighbours to launch a minimum CO2 price in the power sector as part of a flagship alliance of states." Positive signals for such an approach are now coming from a good ten member states - particularly France and the Netherlands.

The study "CO2 prices: an idea whose time has come" is the latest comprehensive overview of the currently developing pricing of greenhouse gases worldwide. It examines the countries of the G20 and the EU plus Norway and Switzerland with regard to the question of which CO2 prices have already been introduced and in which countries, analogous to Germany, the expansion of CO2 pricing is being debated. In doing so, it also takes an up-to-date look at the expected future development of CO2 pricing worldwide.

The study in numbers:

- •    45 states examined: 30 European (EU plus Norway and Switzerland) and 15 other G20 countries (4 EU countries and the EU as a whole not counted twice)

- •    39 of the 45 states surveyed have national or regional CO2 pricing systems was set up. This includes European emissions trading.

- Of the total of 19 G20 countries 13 have implemented national or regional CO2 pricing (including European emissions trading).

- Of the 28 EU members 12 states have national CO2 prices in addition to the European Emissions Trading Scheme. 9 of them in the transport and/or buildings sectors. All 12 states have chosen a tax solution.

- In addition to Germany, a total of 23 of the 45 countries are currently Debates on the further development or start of CO2 pricing. That is more than half of the countries surveyed. Some of the debates are very advanced, some still in the early stages.

Key findings of the study:

- More and more countries around the world are introducing CO2 prices. Germany would not be a pioneer, but would follow an international trend, if the Federal Government were to price CO2 now in addition to the current design of the EU emissions trading system.

- The international momentum for introducing and strengthening carbon pricing will most likely continue. A large number of countries are currently discussing the introduction of new or the further development of existing national and regional CO2 pricing instruments.

- The states are increasingly focusing on socially acceptable design.

- By introducing additional emissions trading in the transport and buildings sectors - instead of a tax solution - Germany would be taking a special path.

To the study "CO2 prices: an idea whose time has come": www.germanwatch.org/de/16693

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