Germany is to raise its carbon dioxide levy on emissions from transport and heating buildings to €25 per tonne from 2021.

Originally a levy of €10 was proposed, but it came under criticism for being too low, and under the agreed system the levy will escalate to €30 in 2022, €35 in 2023, € 45 euros in 2024 and then €55 in 2025.

According to a report from Reuters, the deal was sealed by agreeing to a package which would reduce rail fares and raise taxes on air travel, , as part of a drive to push people from roads and onto rail.

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