BERLIN (Reuters) - Chancellor Angela Merkel said on Tuesday her cabinet would decide by September how to handle areas where carbon-cutting efforts are lagging and threatening compliance with Germany’s climate targets for 2030.
She said the policy could entail bringing sectors like transport, buildings and agriculture into the fold of the European Union emissions trading system (ETS), where they would be subject to a commonly set price of emissions allowances that polluters must hold.
Alternatively, these sectors would be set emissions-cutting targets of their own. But this bore the risk of high costs.
“It will be a fundamental decision that will have to be arrived at very carefully and in a timely fashion,” Merkel said.
Reporting by Vera Eckert and Michelle Martin, editing by Paul Carrel