The so-called climate package, which includes plans to reduce rail prices and increase taxes on air travel, will take effect on January 1st after months of wrangling. The climate package has already attracted criticism from environmentalists and business lobbies, but the government was keen to show it was taking global warming seriously after months of massive "Friday for Future" protests. 'CO2 price'Germany's climate package is estimated to cost the government €54 billion euros by 2023. To offset the higher costs for consumers and companies, the climate package envisages subsidies for electric cars and tax incentives for greener heating, electricity and housing. Merkel on Monday welcomed the carbon price compromise as a "positive contrast" to the lack of progress achieved at last week's inconclusive COP25 global climate conference in Madrid.

Source: The Local December 20, 2019 11:59 UTC