BERLIN, Sept. 23 (Xinhua) -- Following criticism by opposition parties and environmental associations, Germany's Federal Ministry for the Environment defended the government's climate policy package on Monday.
"I am convinced that the overall mechanism is suitable for putting Germany on track," said Jochen Flasbarth, state secretary for environment.
On Friday, the German government had agreed on a bundle of measures to reach the country's national climate targets of 55 percent fewer greenhouse gases by 2030, including CO2 pricing and various tax incentives.
From 2021 onwards, Germany's transport and buildings sectors would see a fixed price on carbon for petrol, diesel, heating oil and natural gas. The price for pollution rights would start at 10 euros per ton of CO2 and gradually rise to up to 35 euros by 2025.
"A ridiculously low CO2 price -- which only increases the price of petrol and diesel by a few cents and is also offset by a higher commuter allowance -- suggests climate protection, but remains completely ineffective for another ten years," said Martin Kaiser, head of Greenpeace Germany.
Flasbarth admitted that the pricing was "very low," but stressed that the carbon price would "gradually become more expensive," albeit at a moderate rate.
The chairman of Germany's Green Party Robert Habeck told the German public broadcaster ARD that CO2 pricing could "perhaps become effective in the middle of the next decade. But the expectation has always been that from 2020 there will be an effective price that really changes behavior."
The German Association of the Automotive Industry (VDA) welcomed the fact that the government had decided to start CO2 pricing for fuel which would "complement the steering effect" of already existing fleet limits for carbon set by the European Union.
Support also came from Germany's national railway company Deutsche Bahn (DB), which announced that the climate package was "excellent news for the railways in Germany and their customers."
Rail travel in Germany is set to become cheaper as the value added tax (VAT) on long-distance train tickets would be reduced from 19 percent to 7 percent.
"According to our initial estimates, the German government will strengthen the German rail sector by an additional 20 billion euros by 2030. This is great news for the entire sector and its more than 500,000 employees," said DB chief executive officer (CEO) Richard Lutz.
