Volkswagen Pushes for Huge Carbon Price Jump – More Than Tripling in Six Years

–High carbon prices seen providing billions of euros of government revenue for social needs

By Mathew Carr

Nov. 27, 2020 — LONDON: Big European business is now firmly behind more aggressive climate action, including huge increases in carbon prices that will add revenue for governments.

See this from

  • Herbert Diess, Chairman of the Board of Management of Volkswagen Group, who’s calling for prices more than three times current levels in the EU of about 28 euros a ton

(Link to full LinkedIn post below)

“In Germany, the carbon price is set to be 25 euro per ton in 2021, by 2026 it is supposed to be 55 to 65 euro. We can do so much better! Volkswagen Group is committed to a minimum price of 60 euro per ton starting 2023 – for Europe! By 2026, the amount should be raised to 100 euro per ton.

Why?

1. It is a control pulse that obviously works: Sweden steers ahead with 110 euro – and it’s proven to be effective. With 4.4 ton per capita, Sweden’s carbon footprint is about half of Germany’s (8.81 ton per capita). Without the standard of living or economic performance suffering!

2. 10 tons as the average value per citizen would lead to an additional tax burden of 1000 euro per year. That is a lot at first – but it would be reduced, if we halved the footprint (after Sweden’s example) and changed the tax system: Higher carbon prices would, for example, lead to a faster coal exit. And: For wealthy frequent travelers (such as myself with over 1,000 ton in 2019) it would be significantly more expensive than for those who only take a vacation flight once a year – therefore socially just as well. Important note: The money obtained should, for example, be spent on improving public transport, relieving the social burden – and ideally on further CO2 reduction as well.”

CONTINUES

Full blog here: https://www.linkedin.com/pulse/why-we-need-carbon-price-herbert-diess/?trackingId=NO0ZX%2BL7NfzUBxDUKERQvA%3D%3D

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