Facing rising energy costs triggered by the Iran war, Joachim Rukwied, president of the German Farmers’ Association, has called for a temporary pause on CO₂ pricing. In an interview with the “Rheinische Post” (Wednesday edition), he urged the federal government to suspend diesel CO₂ levies for agriculture and the wider economy for the short term. “A halt would help farmers and, for example, the transport sector” he said.
The recent, sharp spikes in diesel prices are especially painful for the current spring buying cycle. “Our operating and energy costs are rising sharply, yet most farm products still sell at record lows. This mismatch cannot be managed” Rukwied explained.
The current cost increases are simply unsustainable for the sector. “We also need higher producer prices for our products” he added, underscoring the need for more robust income support.
Under Germany’s national emissions trading scheme-covering fuels like gasoline, diesel, natural gas, and waste-companies must purchase emission certificates for each tonne of CO₂ emitted. From 2028 this scheme will largely be replaced by the EU ETS 2 for buildings and transport. For 2026, the price corridor for certificates is set between €55 and €65, but because supply is capped, higher demand can push prices up and lower demand can bring them down. Revenues from the scheme flow into the Climate and Transformation Fund, which finances initiatives such as expanding electric‑charging infrastructure and accelerating hydrogen development.
