Germany will raise the price for carbon dioxide emissions from transport and heating buildings to €25 ($27.56) per metric ton from 2021 after a proposed €10 price tag was criticized for being too low, government sources said on Monday.
The lower house of parliament last month approved a package to help Germany achieve its target of cutting greenhouse gas emissions to 55 percent of their 1990 level by 2030, but the opposition Greens, economists, business groups and activists rounded on its €10 a ton CO2 emissions price.
A deal on the higher price between federal government and states paved the way for the Bundesrat upper house of parliament to agree before Christmas to a reduction in VAT on state-owned rail operator Deutsche Bahn's train tickets, the sources said.