Economist Michael Hüther sharply criticized Chancellor Friedrich Merz (CDU) for questioning CO₂ pricing.
Hüther told the “Neue Osnabrücker Zeitung” (Monday edition) that establishing CO₂ prices through emissions trading remains “the most interesting institutional concept in climate protection because it is scale‑neutral and sends the necessary signals to companies”. He warned that the current retrenchment movements are problematic: “It is unclear where the journey goes, and uncertainty is an issue because businesses need stable expectations”.
At an EU economic summit a few days earlier, Merz suggested shifting the CO₂ trading system. “If it turns out to be wrong, we should be very open to revising it or at least moving it” he said in Antwerp. The comment sparked irritation on the emissions market.
Hüther expressed concern over Merz’s remarks: “That raises questions that are more extensive; it’s not smart, I would not do that”. He added that emissions trading should be further developed and aligned with the EU goal of almost climate‑neutrality by the middle of the century. “But if we distance ourselves from the instrument, we will face a climate‑policy disaster”.
Environment Minister Karsten Schneider (SPD) recently called for extending the phase in which companies receive pollution allowances for free. Hüther sees this as a viable option: “A longer allocation of free certificates to companies that emit greenhouse gases does not fundamentally challenge emissions trading and can make sense”.