Germany's Parliament Approves Larger Carbon Price Hike

The move, part of a package to resolve a budget crisis, is expected to impact fuel prices and fund climate change measures.

Germany's parliament has approved a plan to increase the country's carbon dioxide emissions levy from 30 euros to 45 euros per ton, a larger increase than the previously planned rise to 40 euros.
The increase is expected to affect prices for gasoline, diesel, natural gas, and heating oil.
The decision is part of a package of measures designed to address a budget crisis caused by a recent court ruling.
The court ruling annulled a government decision to repurpose 60 billion euros intended to mitigate the impact of the COVID-19 pandemic for climate change measures, creating a 17 billion-euro hole in next year's budget.
Other measures to address the budget shortfall include reducing climate-damaging subsidies, slightly cutting some ministries' spending, and using privatization revenue to modernize Germany's railways.