The planned German climate bonus is in danger of withering away on the back burner. The government does address the issue, but it is not likely to be implemented before the 2025 election. That could be a mistake.
Actually, the climate bonus is a smart idea. "Households that produce little CO2 could look forward to a profit because the flat-rate climate bonus would exceed their CO2 tax expenditure. People who fly a lot, own a large house and drive a large car full speed on the autobahn will end up paying more," explains LBBW Chief Economist Moritz Kraemer. "That's a good thing. Climate-friendly behavior is rewarded, climate-damaging behavior costs money. And citizens retain their freedom of choice," he says.
You can read why the introduction of climate bonus would also benefit the dented German government and its climate policy in the latest LBBW To the point.
