Climate Tax Discussion

 At some point in 2023, a CO2 tax situation will occur within the German landscape.  There are various discussions going on within the government (SPD, Greens, FDP)....on the 'model' to be used.

In a marginal way, it started last year.....to give Germans a brief minor introduction.  Chief affect?  Well....heat.

What it's supposed to do?  Reduce in some way....'climate-damaging carbon dioxide emissions'. 

The current rate?  It's 30 Euro per ton of CO2. 

How it's figured currently?  It comes to around 8 Euro-cents per liter for liter of heating oil, or half-a-Euro-cent per kilowatt hour for natural gas. 

Naturally, it's supposed to escalation.

Right now, the system is built to hand the bill to renters....NOT the owners of the building or landlords.  Political folks have been disturbed over this.....renters don't have any 'power' over upgrading the building or changing out the heating systems.  So the political folks want the dynamic changed....where the tax is mostly handed to the building owner/landlord.

Focus went and wrote a fairly decent review of the discussion, and where this is leading to.....which I'd recommend a read.

If you look at this 'Frankenstein-like' program being created....it's a fairly complicated situation, and would involve a heating review (meaning you the landlord pay someone to give you a 'grade').  That review would then relate to what I'd call a punishment fee.

To get the cheaper fee/rate, you'd have to go and take various actions to upgrade the heating.  Cost factor?  Absolutely.  

So here's the thing....to get into the review....then get a grade.....then react to some upgrade....to get another review in the future, then get the best grade, who exactly do you think will be paying the cost?

Yeah....that renter is looking at fantastic changes on rent over the next decade as this program falls into place.  It wouldn't surprise me if you were paying double your rent by 2032.  

Oh, the government may suggest that none of this will fall upon the renter, but in the real world.....the landlord is continually adjusting for cost issues upon his property.  He's not stupid.....if the demand is there to spend 18,000 Euro over a decade to upgrade a two apartments in his house...he will just pass the cost onto the renters.

All of this may be done in the name of climate repair, but it's got a relative cost factor that is not completely grasped by the general public.