Germany Peeks at Green Stimulus in Post-Covid-19 Policy Push | Instant News

The shift in German green energy might get a financial injection when the effects of coronavirus recede, according to senior Chancellor members Angela MerkelCabinet

When the acute phase of the virus ends, the government plans a stimulus package that advances the nation technologically and helps the economy move towards climate neutrality, the Minister of Finance Olaf Scholz word in a Interview with Funke Mediengruppe. Such a package “makes sense,” said Social Democrats without adding details.

Such a move would allow Germany, Europe’s largest greenhouse gas emitter, to exploit the positive environmental characteristics of Covid-19’s influence on the economy: a drop in CO2 emissions, said Patrick Graichen, executive director of the Agora Energiewende think tank in Berlin.

“What’s important for climate is sustainable emissions reductions, not one-time reductions,” Graichen said by telephone. “We need a green growth and investment program quickly. To be sure, once the crisis ends, emissions will soar again. “

To make an impact, the green stimulus program must be of the order of 100 billion euros ($ 108 billion), Graichen said.

Europe’s biggest economy may plummet 5% this year, according to the government. That is an ironic gift for pollution results and will enable Germany to achieve more than its goal of cutting carbon emissions by 40% from 1990 levels by the end of this year, according to Agora.

Germany is set to miss its target after reducing emissions by around 35% in 2019. Agora estimates that it can reduce emissions by as much as 45% in December.

CO2 reduction has a negative side. The price of pollution certificates in the EU’s emission trading system has fallen by almost a fifth this year due to measures to deal with the corona virus to cripple the region’s economy. Emissions in European markets are seen to have dropped by another 15% this year after falling by almost 10% last year.

Scholz, minister of finance, intended around 33 billion euros in revenue from the sale of EU emissions permits and from a separate national carbon trading system to help pay a large The 54 billion euro climate action plan launched by Merkel last year. Anticipated revenue may need to be recalculated if the permit price remains sluggish.

To contact reporters about this story:
Brian Parkin in Berlin in [email protected];
William Wilkes in Frankfurt in [email protected];
Mathew Carr in London in [email protected]

To contact the editor in charge of this story:
Reed Landberg in [email protected]

Andrew Reierson, Jeremy Hodges

© 2020 Bloomberg L.P. All rights reserved. Used with permission.

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