26.3 C
New York
Thursday, July 7, 2022

German transport minister opposes fuel tax to clean up diesel

German transport minister opposes fuel tax to clean up diesel© Reuters. German Transport Minister Andreas Scheuer addresses a news conference in Berlin

By Markus Wacket and Andrea Shalal

BERLIN (Reuters) – Germany’s transport minister said on Wednesday he opposed a fuel tax on diesel to encourage a shift towards cleaner vehicles but manufacturers should speed up their push to get polluting cars off the road through incentives for customers.

The German government has agreed to reduce emissions from the transport sector by 40 percent but it remains unclear how the goal will be achieved.

Andreas Scheuer, a member of the CSU Bavarian conservatives, said he favored a system of incentives to reduce carbon dioxide emissions rather than using a tax on carbon-based fuels, like the one favored by the Social Democratic environment minister.

“I oppose taxes and additional burdens,” he told Reuters.

German carmakers last month agreed to offer up to 3,000 euros ($3,400) per car to help Germany clean up toxic fumes from heavily polluting diesel vehicles as part of a last ditch effort to avoid a court imposed ban on diesel vehicles.

“The manufacturers have to deliver,” Scheuer said in an interview. “I hope that the pressure in the market leads to improvements for the diesel owners … The government can’t impose it, but it’s clear the German manufacturers would be well-advised to win back the trust of the domestic market.”

Scheuer also faulted the industry for lackluster progress on developing alternative propulsion systems, such as electric cars, despite the fact that the government had spent around 5.2 billion euros on such programs.

“Too little has happened there,” he said. “The customers need functioning vehicles and not studies, and not pilot programs that can be shown off at car shows.”

Car owners can trade-in older vehicles for cleaner newer ones, or opt for cumbersome retrofits of more effective exhaust filtering systems at a later stage.

The global reputation of Germany’s car industry has been tarnished by a series of scandals involving schemes to conceal the true levels of pollutant emissions from diesel cars.

The government has been pushing German carmakers – Volkswagen (DE:), Daimler (DE:) and BMW (DE:) – and foreign manufacturers to take quicker action to get polluting cars off the road.

He said many Asian manufacturers were moving ahead far more quickly to build large numbers of alternative vehicles, while German firms were still building just small numbers.

($1 = 0.8827 euros)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

11,296FansLike
12,893FollowersFollow
751FollowersFollow
- Advertisement -

Latest Articles

Popular Articles