According to the German Federal Environment Ministry, the country's 2030 climate protection programme is expected to reduce Germany's greenhouse gas (GHG) emissions by 51% by 2030 compared to 1990 (from 1,252 MtCO2eq in 1990 to 614 MtCO2eq in 2030), falling short to achieve the target of at least 55% reduction by 2030 (down to 543 MtCO2eq). Germany will thus have to accelerate efforts to meet its GHG reduction target, especially in the sectors of transports, which is expected to post a 33 MtCO2eq gap (GHG emissions of 128 MtCO2eq vs a target of 95 MtCO2eq), and in buildings, where GHG emissions should be 17 MtCO2eq higher than the 70 MtCO2eq target. Emissions from the energy sector are also expected to exceed the target by 11 MtCO2eq, at 186 MtCO2eq.
In December 2019, the Bundesrat (upper house of the German Parliament) approved Germany's climate package. Germany will introduce a national price of €25/t of CO2 emissions in the transport and construction sectors as of 2021, which will be raised to €55/t by 2025, before being incorporated into an EU-wide emission trading system (ETS). The climate package also includes subsidies for electric cars and tax incentives for cleaner electricity, housing and heating. Energy-saving home renovation will benefit from tax credits and the renewable electricity surcharge (EEG) should be reduced for end consumers, lowering electricity prices. Where transports are concerned, flights will become more expensive, while long-distance rail tickets should become around 10% cheaper. It includes compensation for the losses in tax revenues for federal states bearing the costs (cost of lowering taxes on long-distance trains, tax benefits for energy-saving home renovations and increase in the commuters allowance).
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