CO₂ millions for the pension? What the state does with climate money

What is the CO₂ tax?

The CO₂ tax introduced in 2021 is a levy on climate-damaging fuels such as petrol, diesel, heating oil and gas. It is intended to create an incentive to reduce the consumption of fossil fuels. The aim is to make alternative energy sources more attractive in terms of price. When it was introduced, the price was 20 euros per tonne of CO₂. Since then, it has risen by five cents every year. To illustrate the effects with a concrete example: A few years ago, the national statistics institute Statec calculated that the price of diesel at the petrol station would increase by five, six, andd seven cents per litre between 2021 and 2023 respectively.

Is this the only CO₂ tax?

No, and not the first either. In 2006, the state introduced the Kyoto tax (also known as the Kyoto cent) on petrol and diesel purchases to finance measures to offset greenhouse gas emissions. It was supplemented by the more comprehensive CO₂ levy, which is expected to bring in around 286.1 million this year according to the public budget portal. Finance Minister Gilles Roth (CSV), on the other hand, spoke of around 250 million euros in May.

Strictly speaking, the motor vehicle tax is not a climate tax, even if it can provide an incentive to switch to locally low-emission or emission-free cars. Since 2001, it has been calculated on the basis of CO₂ emissions and the type of fuel used by vehicles. It generates annual revenue of around 68 million euros for the state.