The CEO of German utility E.On is calling for a new carbon tax in Germany, saying Tuesday a “better and fairer energy transition” was possible, Kallanish Energy learns.
The tax would be 35 euros ($39) per metric tonne of emissions that result from the use of fossil fuels for power generation, transport and heating. Authorities in Germany are currently in discussions about such a tax, according to Reuters.
In a statement issued at the German firm’s annual shareholders meeting Tuesday, CEO Johannes Teyssen said the levy would generate 25 billion euros ($28.01 billion) in tax revenue for the German Finance Ministry.
Germany is increasing the use of renewables while moving away from nuclear power. In 2017, renewables comprised 33.3% of gross electricity generation, with wind power, biomass and solar photovoltaics the leading renewables types.
Teyssen told Reuters while electricity in Germany had become “increasingly green,” the conversion of its “entire energy system” was supposed to be financed by customers through electricity prices.
“As a result, clean electricity has become more and more expensive relative to dirty fossil fuels,” he added.
“We’re proposing that in the future the annual cost of Germany’s Renewable Energy Law — currently around 25 billion euros — should be financed by the federal budget with the revenues from the carbon tax,” he added.
Teyssen added Germany’s electricity tax should be reduced, which he said would cut electricity prices “by almost 9 cents per kilowatt hour.”
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