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Monday, September 23, 2019

Germany unveils new climate plan -- will pay for it with higher taxes

Germany unveiled a 
"3-digit-billion" euro plan 
to address climate change, 
but it will have 
a "neutral impact" 
on government finances 
(no new government debt).

Angela Merkel's government 
reached a deal Friday 
on a broad climate plan 
for Germany.

Tens of thousands 
of climate protesters 
rallied, demanding more 
environmental protection.

The coalition reached 
"an agreement with 
many measures and an 
annual monitoring mechanism" 
on meeting climate targets, 
said a government source.

The plan tackles emissions 
in the energy and industrial 
sectors, to incentives 
for zero-emission electric 
vehicles or public transport.

The package is worth 
about 50 billion euros 
                 ($55 billion), 
according to local 
media reports. 

Germany's DPA reports 
the nation won’t take on 
additional debt to fund 
the package.

The package will be paid for 
by increased taxes:
Consumer prices of gasoline 
and diesel to rise EU0.03 
per liter from 2021, and by 
EU0.09 to EU0.15 per liter by 2026; 
and additional funds from a national 
carbon trading scheme. 

However, Germany stated 
that it may issue green bonds 
(borrow money) in the future.