German Greens Reject Merz's EU Carbon Market Reform, Warn of Climate‑Trade Weakening.
Politics

German Greens Reject Merz’s EU Carbon Market Reform, Warn of Climate‑Trade Weakening.

Franziska Brantner, co‑chair of the Green Party, rejected Chancellor Friedrich Merz’s proposal to overhaul the EU’s existing carbon‑emission trading system and to postpone further action in the wake of economic uncertainty.
In an interview on RTL and ntv’s “Frühstart”, she said that the aim is to preserve and renew prosperity without destroying the planet. “Germany should develop the technologies needed to achieve this and profit from them, rather than letting it be left to China” she added.

Brantner underscored the importance of maintaining the market mechanism that Merz has long supported, while also ensuring that climate protection is rewarded. The focus, she said, should be on boosting European competitiveness, accelerating progress, simplifying procedures, and shielding German industry from unfair competition.

According to Brantner, the government can still make strides by lowering the electricity tax, stabilizing wage‑side costs, and investing in innovation. She criticized the idea of looking backward for solutions, labeling it absurd and pointing out that while Chinese companies already reap large profits, Germany should also benefit.

The EU’s two CO₂ trading schemes remain the flagship climate‑policy tools. The total number of certificates, which cap how much CO₂ industries can emit, is reduced by 4.4 % annually. By 2039, the supply of certificates will reach zero. Companies still receive a portion of them free of charge, but this free allocation is set to be sharply curtailed from this year onward.

In Germany, revenue from the carbon trading scheme goes to the Climate and Transformation Fund, financing renewable‑energy expansion, electric‑mobility promotion, energy‑efficient building retrofit, hydrogen projects, and the transition to climate‑friendly industrial processes.