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Germany voted on Sunday night to raise the carbon tax. German motorists will have to pay 7 to 8 cents per liter more at the pump. JOHN MACDOUGALL / AFP

Even before the Madrid climate summit which ended on Sunday, Germany had adopted a climate package to achieve a 20% reduction in greenhouse gas emissions by 2030 by 2030 1990.

From our correspondent in Berlin, Pascal Thibaut

The proposals had been criticized for their timidity. The parliamentary debates resulted in the night from Sunday to Monday on a compromise which provides for a significantly higher increase in the carbon tax, the flagship measure of the government , which comes into force on January 1.

A tax of 25 euros per tonne of CO2

Environmental organizations , experts and also environmentalists believe that the level of the carbon tax planned from January 1 was far too low to produce rapid effects. The Greens, who participate in several regional governments, have been able to influence the parliamentary process because the House representing the Länder has its say.

The agreement found in the night from Sunday to Monday provides that the amount of the tax will ultimately be 25 euros instead of 10 euros per tonne of CO2 produced. It will gradually increase to 55 euros in 2025, the date on which these national emission permits should be integrated into a European system .

press info: the carbon tax planned by the government on 1/1/2020 at 10 Euros per tonne of Co2 will ultimately be 25 Euros after an agreement with the regions that have a say in the upper house.

Pascal Thibaut (@pthibaut) December 16, 2019

German motorists will have to pay 7 to 8 cents per liter more at the pump. Oil or gas heating will also be affected. The revenue from this tax will be used to lower the tax paid by users on their electricity bill for the development of renewable energies.

Higher tax deduction

Taxpayers will therefore be able to obtain compensation. People who use their car to commute to work will benefit from a higher tax deduction in the future.

This agreement also allows another provision of the climate package to enter into force on January 1, namely the reduction of VAT from 19 to 7% on train tickets . Deutsche Bahn has promised to lower its prices by an equivalent amount for users.