\nGermany leads Europe in CO\u2082 pricing\u2014but the wrong way. Revenues from the European and national emissions trading reached a new record in 2024 at \u20ac18.5 billion. While EU ETS 1 earned \u20ac5.5B (down 28% from 2023), the national scheme (nEHS) grew by 21% to \u20ac13B.
\nA CO\u2082 price of \u20ac55\/tonne for 2025 means:
\n\u2022 Gasoline: +15.7 cents\/liter
\n\u2022 Diesel: +17.3 cents\/liter
\n\u2022 Natural gas: +1.32 cents\/kWh
\n\u2022 Heating oil: +14.72 cents\/liter<\/p>\n
The broken promise of the climate dividend:<\/strong> While citizens pay for their emissions, the government plans further climate-harmful subsidies of \u20ac9 – 15 billion annually – about as much as planned for climate protection investments: Traditional subsidies persist:<\/strong> No comprehensive national CO\u2082 pricing: Instead, a patchwork of regional approaches exists:<\/strong><\/p>\n \u2022 Catalonia: vehicle CO\u2082 tax since 2021, \u20ac6\u201360\/year based on emissions ETS revenues vanish in investment pots:<\/strong> Cosmetic transport measures:<\/strong> A functioning climate bonus:<\/strong> End of a success story: Proven system, broad acceptance:<\/strong> System reform planned:<\/strong> ETS 2: \u20ac300 billion for Europe<\/strong> Social Climate Fund: \u20ac86.7B<\/strong> Germany missed the June 30, 2025, submission deadline. Without a plan, there\u2019s no access to EU funds – a major climate policy failure. Systemic Problems With European CO\u2082 Pricing<\/strong> 1. European climate money<\/strong> 2. Minimum price with price corridor<\/strong> 3. Abolition of climate-damaging subsidies<\/strong> 4. Earmarking of revenues<\/strong> 5. Monitoring and transparency<\/strong> CO\u2082 pricing remains the most powerful instrument of climate policy, but its implementation is disastrous. Germany collects billions without returning them to citizens. Spain clings to regional patchwork. Austria terminates its successful model for budget reasons. Switzerland, outside the EU, leads the way. With ETS 2 and the Social Climate Fund, Europe faces a historic chance to mobilize \u20ac300B for fair climate action\u2014yet without reforms, the system risks becoming another costly failure. The time for cosmetic corrections is gone; Europe needs a revolution in CO\u2082 pricing\u2014transparent, socially just, and ecologically effective.<\/p>\n Francesco Del Orbe is an expert in sustainable financial policy and climate economics. As a “Guardian of the Earth,” he analyzes the interrelationships between environmental policy and social justice.<\/em><\/p>\n <\/p>\n Author: Francesco del Orbe \ud83c\udf0d<\/p>\n","protected":false},"excerpt":{"rendered":" – When Good Ideas Turn Into Bad Deals The Bitter Truth About Europe’s Climate Policy CO\u2082 pricing was meant to become the cornerstone of a fair climate policy: polluters pay, protectors profit. But between this honorable principle and European reality lies a gap that not only shakes citizens’ trust but also jeopardizes climate targets. In…<\/p>\n","protected":false},"author":54,"featured_media":23871,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[185],"tags":[261,253,254,263,307,267,260,255,264,265,252,250,259,262,268,308,207,266],"class_list":["post-23870","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-climate-and-environment","tag-biodiversity","tag-carbonneutral","tag-climate-action","tag-climate-change","tag-climate-farm","tag-climate-protection","tag-co2-binding","tag-earth-guardian","tag-ecosystem","tag-farming","tag-francesco-del-orbe","tag-fresopolis","tag-healthy-soil","tag-microclimate","tag-planting","tag-regenerative-agricultura","tag-sustainability","tag-sustainable"],"acf":[],"yoast_head":"\n
\nDespite massive campaigns and years of promises, Germany’s climate dividend never materialized. Consumers could have received \u20ac139\/person for 2021-23; for 2025, it would have been \u20ac300. The new government effectively buried the climate dividend in its coalition deal. Instead of per-capita returns, CO\u2082 revenues are supposed to “noticeably lower electricity prices”\u2014a shell game that does not offset the regressive nature of the CO\u2082 tax.<\/p>\nClimate-damaging subsidies in the billions:<\/h4>\n
\n\u2022 Energy sector: \u20ac5.9 to \u20ac9.8B
\n\u2022 Transport: \u20ac1.9B
\n\u2022 Commuter deduction: \u20ac1.36B
\n\u2022 Energy tax relief: \u20ac1.5 to \u20ac2B<\/p>\n
\n\u2022 Diesel privilege: equivalent to -\u20ac70\/t CO\u2082
\n\u2022 Company car privilege: -\u20ac690\/t CO\u2082<\/p>\nSpain: Regional Patchwork Without a National Strategy<\/h4>\n
\nUnlike Germany, Spain lacks a nationwide CO\u2082 system<\/p>\n
\n\u2022 Registration tax: 0\u201314.75% based on WLTP emissions
\n\u2022 No nationwide fuel or heating CO\u2082 tax<\/p>\n
\nSpain receives \u20ac3.0\u20133.5B per year from EU-ETS 1, but these funds go mainly to the national recovery program and industrial subsidies\u2014no lump-sum return to citizens.<\/p>\n
\nInstead of structural reforms, Spain opts for cosmetic measures:
\n\u2022 Fare-free public transport until 2025
\n\u2022 Planned “Abono \u00danico” (\u20ac49\/month) from 2026\u2014modeled after Germany<\/p>\nAustria: European Leader With Weaknesses<\/h4>\n
\nAustria shows how CO\u2082 pricing can work with social compensation:
\n\u2022 CO\u2082 price: \u20ac45\/t (2024), \u20ac55\/t (2025)
\n\u2022 Climate bonus: \u20ac145\u2013290\/person\/year
\n\u2022 Regional differentiation and automatic transfer<\/p>\n
\n<\/strong>Despite its success, the climate bonus will be scrapped in 2025 for budget reasons. The \u20ac1.8B savings are the largest single cut in Austria\u2019s austerity package, ending Europe\u2019s most successful CO\u2082 dividend.<\/p>\nSwitzerland: The Gold Standard of CO\u2082 Rebates<\/h4>\n
\n\u2022 CO\u2082 levy: 120 CHF\/t (~\u20ac113)
\n\u2022 74% of receipts returned per capita\u2014via health insurance: CHF61.80\/person (2025)
\n\u2022 Steering effect: building emissions down 34% since 2008<\/p>\n
\nA reform will raise visibility, as only 12% of the population understands the current rebate mechanism.
\nEU Level: ETS 2, CBAM, and the Social Climate Fund<\/p>\n
\nFrom 2027, EU-ETS 2 will extend to buildings and transport with huge financial volumes:
\n\u2022 Forecast: \u20ac300B revenues (2026\u201332)
\n\u2022 Germany\u2019s share: ~\u20ac60B
\n\u2022 Initial price cap: \u20ac45\/t, then market rates<\/p>\n
\nAims to support vulnerable households:
\n\u2022 Volume: \u20ac86.7B (2026\u201332)
\n\u2022 Funding: 25% ETS 2 revenues + 25% national co-financing
\n\u2022 Access only with a national climate social plan<\/p>\nGermany misses the deadline:<\/h4>\n
\nCBAM: Carbon border adjustment mechanism (from 2026)
\n\u2022 Sectors: steel, aluminum, cement, fertilizer, hydrogen, electricity
\n\u2022 Price: linked to EU-ETS 1 (~\u20ac70\/t)
\n\u2022 Goal: prevent carbon leakage<\/p>\n
\n\u2022 Prices too low for effective steering – studies show real steering effect only above \u20ac180\u2013215 per tonne.
\n\u2022 Regressive impact without compensation; low-income households pay proportionately more.
\n\u2022 Industry privileges – 45% of EU ETS 1 certificates free to industry in 2023.<\/p>\n![\"co2](\"https:\/\/earthguardian.earth\/wp-content\/uploads\/2025\/08\/CO2-Steuer.jpg\" "\\"co2")
<\/p>\nReform proposals for fair CO\u2082 pricing<\/h4>\n
\nFull per capita refund of ETS revenues:
\n\u2022 Payment via tax ID or national systems
\n\u2022 Differentiation according to household size
\n\u2022 Transparency through citizen dashboard<\/p>\n
\n\u2022 ETS minimum price: 75 euros\/t
\n\u2022 Price cap: 160 euros\/t
\n\u2022 Market stabilization reserve for ETS 2 from 2026<\/p>\n
\nComplete elimination of subsidies:
\n\u2022 Diesel privilege
\n\u2022 Company car privilege
\n\u2022 Kerosene tax exemption
\n\u2022 Agricultural diesel reimbursement<\/p>\n
\n50% refund to citizens, 50% investment in:
\n\u2022 Public transport expansion
\n\u2022 Heating networks
\n\u2022 Charging infrastructure
\n\u2022 Energy efficiency<\/p>\n
\n\u2022 Annual EU climate finance report
\n\u2022 Tracking of all ETS revenues
\n\u2022 Public database for climate finance<\/p>\nConclusion: Europe’s Missed Opportunity<\/h4>\n