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Germany Planning to Double its Climate Protection Surcharge on Gas Guzzling Vehicles in 2021

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【Summary】Germany is planning to double its climate protection surcharge on gas-guzzling vehicles, such as large SUVs, to encourage people to switch to more efficient cars and EVs.

Eric Walz    Jun 08, 2020 9:00 AM PT
Germany Planning to Double its Climate Protection Surcharge on Gas Guzzling Vehicles in 2021

As countries in Europe team up to fight climate change, some European cities, including the German cities of Berlin, Munich and Cologne, are making plans to ban combustion engine vehicles altogether over the next decade, requiring drivers to switch to electric vehicles if they want to travel into a city center.

In the interim, Germany is planning to double its climate protection surcharge on gas-guzzling vehicles, such as large SUVs, to encourage people to switch to more efficient cars and EVs, according to Reuters. 

The country is planning to increase its climate protection surcharge on the motor vehicle tax for new cars from 2021 meaning that buyers of gas guzzling vehicles will have to shell out more in taxes, a draft law showed on Monday.

According to the European Commission Department on Climate Action, motor vehicles are responsible for around 12% of total EU emissions of carbon dioxide (CO2), the main greenhouse gas linked to global warming.

Beginning July 1, 2009, all vehicles in Germany have been required to pay a motor vehicle tax, based on engine size and carbon dioxide emissions.

The new regulation means that the surcharge would double for buyers of new cars with carbon dioxide emissions of more than 195 grams per kilometer (CO2/km), the draft of the finance ministry showed.

The average emissions of new cars registered in 2018 in the EU and Iceland was 120.8 grams of CO2/km. From 2021, the EU fleet-wide average emission target for new cars will be 95 g CO2/km. This emission level corresponds to a fuel economy of roughly 4.1 l/100 km (~ 60 mpg).

Buyers of smaller vehicles with CO2 emissions below 95 grams do not face any additional surcharge. Fully-electric vehicles are entirely exempt from any motor vehicle tax for the next decade, according to the draft law which is now to be discussed internally among ministries, Reuters reported.

In Sept 2019, German Chancellor Angela Merkel agreed to support a $60 billion package of climate action policies designed to get the country on track to meet its goal of reducing greenhouse gas emissions by 2030. 

Under the terms of the new package, Germany will work to reduce carbon emissions by 55% of 1990 levels by. 2030.

resource from: Reuters

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