How billions from a carbon price could push climate protection and social offsets

The revenue could finance climate money, increase climate protection investments or reduce income taxes. Current debates on climate protection measures revolve around tools such as speed limits and regulation of e-fuels. In the process, the carbon price with its potential for high incomes and distributive justice is forgotten. Calculations by the Copernicus Ariadne project, led by the Berlin-based Mercator Research Institute on Global Commons and Climate Change (MCC), show that Germany could earn up to €227 billion between 2021 and 2030 from national and European emissions trading. These funds could strengthen social acceptance of a carbon price, alleviate costs for low-income households, increase climate protection investments, or lower income taxes through climate money. "We explored five options for using carbon pricing funds and tested their effects," he explains  Matthias Kalkuhl , Head of the MCC Economic Growth and Human Development Task Force and Head of Tax Reform Task Force Ariadne. In addition to the effects on climate protection, administration and the economy, the Ariadne documentation provides an overview of the various possible uses of carbon price revenues.