The European Commission (EC) on Tuesday, August 2, approved a plan by the German government for almost 3 billion euros to support district heating programs using renewable energy sources (RES) and waste heat, which are expected to help Germany and the European Union meet their climate change. It is reported in a press release on the EC website.
The €2.98 billion plan will help green energy development by providing government subsidies. This assistance will be provided until 2028 to new district heating networks running at least 75% on renewable energy and waste heat, or projects to decarbonize existing networks.
EU: State aid must be necessary and appropriate
It is noted that this plan is in line with EU rules that require state assistance to be “necessary and appropriate”, because without it in new facilities district heatingPolluting fossil fuels are likely to be used, or such investments will not be made due to high investment costs and low returns.
“Thanks to this measure, Germany will be able to increase the share of renewable energy and waste heat in the heating sector, thereby significantly reducing its emissions,” European Commissioner for Competition Margrethe Vestager said in a press release.
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Climate protection in Germany: government program until 2030
Shutdown of coal-fired power plants
The German government has decided by 2038 to stop the use of coal in the electric power industry – the most harmful fossil energy carrier for the climate. Already in 2022, the total capacity of coal-fired power plants will be reduced by a quarter. Those that work on imported coal will be closed at an accelerated pace. For the curtailment of brown coal mining, a number of German regions will receive multi-billion dollar compensation.
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Climate protection in Germany: government program until 2030
Development of renewable energy
By 2030, 65% of the electricity consumed in Germany should be produced from renewable sources (RES), primarily with the help of wind and solar. At the time of the adoption of the program in September 2019, this figure was about 43%. Among the measures to stimulate the development of renewable energy sources is an increase in the material interest of local authorities in installing wind turbines on their territory.
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Climate protection in Germany: government program until 2030
Introduction of CO2 emission certificates
Anyone who emits significant amounts of greenhouse gases into the atmosphere must pay for it. This is the meaning of the CO2-certificate system introduced in the European Union back in 2005 for industrial enterprises. In Germany, from 2021, companies selling various types of fuel to consumers will also be required to purchase such certificates. As a result, it should rise in price.
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Climate protection in Germany: government program until 2030
Rising fuel prices
The price of CO2 certificates, according to the government program, will systematically increase in 2021-25. This should lead to a gradual increase in the price, in particular, of gasoline and diesel fuel at filling stations. The goal of the government program is to encourage motorists to use oil products more economically and, ultimately, to switch to environmentally friendly modes of transport.
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Climate protection in Germany: government program until 2030
Promoting electromobility
The German government has expanded and extended until 2025 a program to stimulate the purchase of all-electric cars and plug-in hybrids charged from a wall outlet. Thus, the discount for electric vehicles priced up to 40 thousand euros has been increased from 4 to 6 thousand euros, for more expensive models it is 5 thousand euros. At the same time, it was decided to install 50,000 new public charging stations in 2020-21.
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Climate protection in Germany: government program until 2030
Increasing tax on airline tickets
Emissions from the operation of aircraft engines are very conducive to the greenhouse effect, so the German government is striving to reduce the number of air travel, especially within Germany and Europe. One of the points of the climate protection program is an increase in the tax on air tickets from April 1, 2020. In particular, by 5.65 euros to 13.03 euros when departing from airports in Germany on intra-European routes.
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Climate protection in Germany: government program until 2030
Railway Tax Benefits
The more passengers prefer cars, intercity buses and aircraft electric trains, the better for the climate, according to the German government. One of the points of his program is the reduction of VAT on railway tickets from 19% to preferential 7% from January 1, 2020 and, as a result, their reduction in price on long-distance trains by 10%. Lost taxes to the treasury are compensated by the collection from air passengers.
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Climate protection in Germany: government program until 2030
Prohibition of diesel heating of houses
Significant CO2 emissions occur when buildings are heated. In many German houses, primarily individual ones, heating systems still operate on fuel oil or diesel fuel, often very old and inefficient. The state is ready to take on 40% of the cost of replacing them with modern environmentally friendly technologies. And from 2026, the installation of diesel boilers will be generally prohibited.
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Climate protection in Germany: government program until 2030
Support for low energy housing
The more energy-saving technologies are used in a building, the less energy is required to heat it. Therefore, from 2020, the German government, as part of the climate protection program, will provide tax incentives to all homeowners for installing energy-efficient double-glazed windows in windows and for thermal insulation of walls and roofs.
Author: Andrey Gurkov
