Germany is enacting a carbon-pricing program in a move that, if successful, could become a global phenomenon.
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The central premise behind penalizing carbon releases is to get utilities and other industrial giants to invest in greener energies and modern methods. Two general paths are typically pursued, although each one can vary — as they have among those countries and jurisdictions trying or considering them: the first is a straight up tax on CO2 releases while the second is a free market trading program.
"The climate package is at best an indication of a change of direction, but this has not yet taken place," says Ottmar Edenhofer, director of the, which along with the Mercator Research Institute on Global Commons and Climate Change, is advising the German government."Now it comes to the task of making adjustments during the next steps, developing carbon pricing as the core instrument of climate policy and raising the price to an appropriate level.
Germany is responsible for 2% of the globe’s CO2 emissions. Besides shifting its electric generation portfolio, the government aims to put as many as 10 million electric cars on the road while also installing 1 million charging stations.
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