Because energy costs are rising as a result of the war in Iran, Joachim Rukwied, president of the German Farmers’ Association, has demanded that the German government temporarily suspend the CO₂ pricing regime. “We are asking the federal government to put the CO₂ tax on diesel for agriculture and for the entire economy on hold for the short term” he told the “Rheinische Post” (Wednesday edition). He says that such a delay would not only help farmers but also sectors such as transportation.
The sharp price spikes in diesel are especially painful for the current spring deliveries. “Our costs for operating supplies and energy are rising sharply, while most agricultural products are being sold at record low prices. That simply doesn’t add up” the association’s president stated. The recent cost increases are beyond what the farming sector can absorb, and higher producer prices for agricultural goods are urgently needed.
Fuels such as gasoline, diesel and natural gas, as well as waste, fall under the national Emissions Trading System. Starting in 2028, the system is largely to be replaced by the European Emissions Trading Scheme for building and transport (EU‑ETS 2). For each tonne of CO₂ emitted, gas suppliers and oil‑industry companies must purchase emission certificates; in 2026 the price corridor for these certificates is set between €55 and €65. Because the supply of certificates is capped, higher demand within the corridor pushes the CO₂ price up, while lower demand drives it down. The revenue generated is channeled into the Climate and Transformation Fund (KTF), which finances projects such as the expansion of electric‑charging infrastructure and the development of the hydrogen economy.