Germany’s Ecological Tax Reform: A Retrospective

Abstract

After months of heated political debate, the German government adopted a new Energy Concept in September 2010, setting out a broad framework for federal energy policy until 2050. Elaborated by the ruling center-right coalition, this document aims at turning Germany into one of the ‘most energy-efficient and greenest economies in the world while enjoying competitive energy prices and a high level of prosperity’.¹ In line with a campaign pledge set out in the government’s coalition agreement, the Energy Concept defines ambitious objectives for the medium and longer term.² Energy pricing through taxes and charges has traditionally held a prominent position in the German energy policy mix, and will also be central to achieving the targets adopted with the new Energy Concept.