Germany is to allow heavy industries in the country to be exempt from environmental taxes, but only as long as they provide guarantees to improve their energy efficiency.
The exemption was due to finish at the end of 2012, but the extension will see around 25,000 German companies continue to benefit from the exemption. This should provide an estimated saving of €2.3 billion ($2.83 billion) annually through to 2022.
The threat of the additional electricity and gas charges that industry in Germany could have been facing are now dissipated, after the industrial sector argued that paying even mores taxes and charges would damage their competitive edge.
The agreement does require the companies have a part to play and a cost to pay. Firms will have to invest in energy efficiency.
