Climate Politics
German Coalition Split on Magnitude of Increase in Carbon Price
- Finance chief pushing for smaller rise due to sticky inflation
- Greens Economy Minister Habeck under pressure to go further
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Germany will increase a levy on polluting fossil fuels used in housing and transportation next year as planned, but senior coalition officials are at odds over the magnitude of the rise given the impact of persistently high inflation on consumers in Europe’s biggest economy.
Finance Minister Christian Lindner wants to limit the increase to €40 ($44) per ton, from 30 euros currently, or roughly 3 cents more per liter of gasoline or diesel, according to people familiar with his thinking.