Introduce climate money before the federal election: Financial experts are calling for rapid implementation

Introduce climate money before the federal election: Financial experts are calling for rapid implementation

According to a report by www.zeit.de Economist Veronika Grimm is calling for the planned climate money to be introduced before the next federal election. She emphasizes that climate money should be introduced before the increase in CO₂ pricing to make it clear that increasing CO₂ pricing is a steering instrument and does not represent a tax increase. According to Grimm, the federal government should definitely keep its promise of climate money, even if it is only introduced after CO₂ pricing. The Ministry of Finance also states that the mechanism for disbursing climate money will be available as planned by 2025.

The rising CO₂ tax and the planned introduction of climate money have a significant impact on households and the economy. The CO₂ tax will rise from 30 euros to 45 euros per ton in January 2024 and could rise to 55 euros by 2025. According to calculations by Veronika Grimm, at a CO₂ price of 45 euros, a family of four could get back more than 650 euros per year with climate money. With a CO₂ price of 55 euros, it would even be over 800 euros per year. This would have a positive redistributive effect, particularly from high to low incomes and from those with high to low carbon footprints.

The introduction of climate money could also have a significant impact on funding policy, as all income from the CO₂ price is currently earmarked for climate support measures or subsidies. A possible payout of climate money would therefore require a fundamental change in funding policy.

Overall, the introduction of climate money is likely to have a noticeable redistribution of income and a steering effect on CO₂ consumption. However, the exact design of climate money and the associated political decisions will still have to be decided.