At the start of the year, the German government quietly launched a novel system of carbon pricing that could revolutionise who pays for the cost of polluting in Europe.
Since January, the EU’s largest economy has introduced a de facto tax of €25 per tonne of carbon on petrol, diesel, heating oil and gas to ramp up the cost of dirty energy and incentivise greener ways of living. It means millions of Germans will be paying more at the petrol pumps and in their heating bills.
Germany’s experiment, known as the National Emissions Trading Scheme, is enlisting consumers to help the country meet its aggressive emissions reduction targets.
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