Germany Unveils 100 Billion Euro Climate Package

News:Germany has unveiled a 100 billion Euro climate package over the next four years to speed up the country’s transition to renewable energy and reduce carbon emissions.

Facts:

About the Climate change plan:

• The plan will include a scheme to charge industrial polluters for carbon emissions.
• The plan includes (a)grants for electric car buyers (b)raising road taxes for polluting vehicles (c)improving heating systems for buildings and (d)raising a green surcharge for plane tickets among others.
• The plan also consists of a scheme which is based on trade in emissions certificates under the European Union’s(EU) emissions trading scheme.

Why the plan now?

• The plan was needed as Germany is on course to miss its 2020 target of reducing 1990 greenhouse gas emissions by 40%,so it is now focusing on 2030 instead.
• Under the terms of the new package,Germany will work to reduce carbon emissions by 55 percent of 1990 levels by 2030.

Additional information:

Emission trading system(ETS):

• Emission trading systems(ETS) is also referred to as the cap-and-trade system. 
• Under ETS, the government caps the total level of greenhouse gas emissions provided to the companies and allows those industries with low emissions to sell their extra allowances to larger emitters.