Left Party Slams Coalition Over Stable CO2 Price, Demands Climate Dividend and Energy Relief
Politics

Left Party Slams Coalition Over Stable CO2 Price, Demands Climate Dividend and Energy Relief

The Linke (The Left Party) has sharply criticized the ruling coalition’s decision to stabilize the CO2 price between €55 and €65 per ton for the year 2027. This stabilization, according to the party, will reduce essential revenue for climate protection measures held within the KTF fund.

Fabian Fahl, the Left’s climate policy spokesperson in the Bundestag, noted in interviews that while the government intends to maintain the CO2 price at a set level, this should surprise Finance Minister Lars Klingbeil (SPD), who had factored rising prices into the budget. Fahl, however, felt little surprise regarding this policy, pointing to what he sees as consistent backtracking from the government on climate issues, including the expansion of gas-fired power plants, subsidies for fossil fuels, and the slowdown of renewable energy integration.

Fahl further stressed that the CO2 price can only function effectively when tied to the previously announced climate cash payment. Since households are already under financial pressure, he argued that money must flow back to the citizens, especially since otherwise the CO2 price will fail to exert its intended steering effect. He used the example of rental housing, stating that tenants cannot choose their heating source and must bear any increased costs.

However, Fahl also criticized the government for rejecting the Left’s proposal for €320 per person in climate cash. He argued that this, combined with the energy crisis aid the party demanded-an additional €150-would significantly alleviate financial burdens on citizens. The government reportedly cited a lack of funds, but Fahl countered that money is instead allocated for fuel discounts that primarily benefit fossil corporations rather than reaching the population. He concluded that the government appears to remain indifferent to both climate protection needs and the financial struggles of the public, noting that the coalition’s recent meeting further demonstrated this neglect.