As part of a €65bn package to tackle the spiralling cost of living crisis, the German coalition government has agreed a range of additional measures to relieve the burden on citizens and companies.

The government package freezes the carbon price levied on greenhouse gas emissions in the transport and building sectors for one year.

The carbon price, which was introduced in 2021 at €25/t, increases yearly and has increased the cost of fossil fuels to businesses as consumers by several cents per litre.

The price, currently at €30/t, was due to increase by €5/t in 2023.

Ireland’s carbon tax, which has the same objective of reducing emissions, increased in price by €7.50 to €41/t Co2 last May.