The two influential EU member states also tightened their 2030 target from 40% to 55% emissions reduction. Germany's environment ministry called the Paris Climate Agreement a "compass" for policy in the wake of the current crisis.
Industry calls for tax relief
The industry responded swiftly, calling for emergency support measures during the coronavirus crisis such as tax reliefs and rules to boost investments in climate action. Dieter Kempf, head of the German industry association BDI, said private investments in energy efficiency and digitalisation could be boosted by improving amortisation rules for new project finance.
He also stressed that high power prices remain a burden for the competitiveness of German industry. A reduction of the surcharges and levies on electricity, such as grid fees, could instantly put money into the pockets of companies and private households alike.
Taxes and the renewable energy surcharge (EEG levy) have pushed up Germany’s household electricity prices to the second highest level in Europe, topped only by prices in Denmark. While Danish households paid €29.2 per 100 kWh on average in the second half of 2019, prices in Germany averaged €28.7, according to the EU statistics office Eurostat.
European Green Deal
Emergency plans are worked up by governments around the global to cushion the economic effects of the pandemic. The increase government spending is seen by some as a chance to accelerate the transition to green energy sources.
The European Parliament this week passed a resolution insisting the upcoming budget must be in line with the European Green Deal. The legislative body called on the Commission to add the economic fund the long-term EU budget, it must not serve as an argument to reduce it.
“The executives in Brussels must establish a €2 trillion fund by issuing long-dated bonds and disburse the money “through loans and, mostly, through grants, direct payments for investment and equity,” the European Parliament said. The bill was passed with 505 votes in favour, 119 against and 69 abstentions.