Refueling and heating will be more expensive: CO2 price will increase from 2024

Refueling and heating will be more expensive: CO2 price will increase from 2024

The federal government wants to significantly increase the CO2 price for refueling and heating with fossil fuels in the coming year. According to consistent media reports, the price is to rise to EUR 40 per ton on January 1st.

It is currently 30 euros. In the federal government, an increase in the CO2 price in 2024 to 45 euros was initially debated. However, further steps are already planned. In 2025, the price should be 50 euros, and the following year 65 euros, as the “Handesblatt” reports.

billions for them building renovation

The federal cabinet approved the draft of the economic plan for the Climate and Transformation Fund (KTF) for 2024 and the financial plan up to 2027, as announced by the Ministry of Finance. This special fund is financed, among other things, from national CO2 pricing in the transport and heating sectors. Billions are to flow from the fund into building renovation, electromobility, the expansion of the railway infrastructure and also the promotion of semiconductor factories.

“We are laying the foundations so that future opportunities can arise from decarbonization and digitization,” explained Finance Minister Christian Lindner (FDP). For 2024, the government expects significant additional income from the CO2 price of around 10.9 billion euros. That would be a good 2.3 billion euros more than this year. “We have to exercise a sense of proportion when pricing CO2, especially in view of the current weakness in growth,” said Lindner.

Four cents more per liter of fuel

The planned increase in the price of CO2 will have consequences for motorists, among other things. According to the Foreign Trade Association for Mineral Oil and Energy, petrol and diesel at filling stations are about four cents per liter more expensive. The costs of heating with heating oil and natural gas also increase as a result.

The national CO2 pricing for petrol, diesel, heating oil and natural gas was introduced in 2021 at 25 euros per ton. The increase in the price of fossil fuels is intended to reduce consumption and thus CO2 emissions in order to achieve climate targets.

economic plan until 2027

The business plan for the KTF envisages so-called program expenditure of around 57.6 billion euros for the coming year. A total of around 211.8 billion will be provided between 2024 and 2027. The plan regulates the expenses and income of the fund, which should no longer receive any grants from the federal budget.

The fund is fed not only from the national CO2 income, but also from the proceeds from the European emissions trading system (ETS). In 2024, these should be just under 8.2 billion euros. At the end of the financial plan in 2027, there was a financial gap of 7.6 billion euros in the fund.

LEAVE A REPLY

Please enter your comment!
Please enter your name here