Germany’s Climate Protection Programme 2030 and its impacts

On 9 October 2019, the German Federal Government adopted the Climate Protection Programme 2030. According to it, the core of the programme is the CO₂ pricing of fossil fuels in the transport and building sectors. The CO₂ price will have a direct influence on end consumer prices and make heating and fuels more expensive. On the other hand, consumers will benefit from a somewhat lower EEG levy and a higher commuter compensation.

What does that mean in concrete terms? EWI has calculated how households are burdened or relieved – using three concrete examples. The focus is on the costs for electricity, heating and fuels as well as possible relief through the commuter allowance.

EWI quantifies these financial effects for the three households:

• A three-person family living in an unrefurbished detached house with an old oil-fired heating system and in which one person commutes a short distance to work by car is more severely affected by the climate protection programme. The rise in heating and fuel costs means that household costs will be 55 euros higher in 2021 as a result of the climate package, and 201 euros higher in 2025.
• A high-income family, in which two people commute to work by car and live in a partially renovated detached house, profits in the first two years. In 2021, the increased commuter allowance will reduce costs by 75 euros. Due to rising fuel costs, the household will pay a total of 108 euros more in 2025.
• For a couple in an unrefurbished apartment with an old gas heating system, the annual costs do not really change. The effects of reduced electricity costs due to EEG compensation and increased heating costs due to CO₂ pricing are almost offset here.