GERMANY: June 19, 2008


BERLIN - The German government approved a climate package on Wednesday which is designed to help it reach a target of reducing carbon dioxide emissions by 40 percent by 2020 compared to 1990 levels.


Due to differences within the ruling coalition, however, plans to link car taxes to emissions were not included in the package and instead delayed until 2010.

The package, which focuses on the transport and construction sector, builds on a previous climate agreement which emphasised green electricity and making power plants more efficient.

TRUCK TOLL - The government agreed to increase truck tolls and link them to pollution. Under the deal, the most polluting trucks would pay tolls of 28 cents per km and the cleanest trucks 14 cents. The average toll would rise to 16.2 cents from 13.5 cents under the new rules, raising an additional 850 million euros for the government in 2009.

HOME ENERGY RULES - The government tightened energy-related requirements for new homes and fully renovated older homes which aim to boost energy efficiency by 30 percent. It established rules on the replacement of central heating boilers, new standards for windows and the isolation of building facades. Chimney sweeps will be charged with enforcing the new rules and reporting violations to authorities.

HEATING COSTS - The government agreed that at least 70 percent of heating costs must be linked to individual consumption. Until now, heating costs in multiple family houses or apartment buidlings were tied equally to consumption and apartment size. In addition, "intelligent" electricity and gas meters are to be installed on a voluntary basis.

POWER LINES - The government agreed to speed up the introduction of new power lines that would link wind energy from the coasts to industrial areas in the south and west of the country.

(Compiled by Markus Wacket; writing by Noah Barkin)


REUTERS NEWS SERVICE