Under pressure to meet set targets that would see a 40% reduction in CO² emissions for the period 1990 - 2020, the German Chancellor Angela Merkel has put forward a number of new proposals that will have a direct bearing on the finances of Germany's road users.

In an interview with the German magazine Motorwelt (January 2008), Dr. Merkel suggested that her plans would not necessarily mean that motorists would pay more. She said that she wanted to encourage greener motoring with incentives and intelligent technical solutions rather than punitive steps.

Merkel relates how other sources (so-called bio-fuels) can yield good quality propellants. As more and more vehicles come to be powered by these new fuels, less CO² will be discharged into the atmosphere. Merkel makes assurances in the article to the effect that Germany would ensure crops cultivated in other countries for production of bio-fuels would not be subsidised to the detriment of valuable local eco-systems such as rainforest.

In terms of concrete short term measures the article is a bit threadbare with the exception that from 2009 vehicle tax will be linked to CO² emissions. This will mean that newer vehicles with more effective filter systems may say be taxed less than they currently are. The existing system, which brackets tax and engine capacity, will apply to all vehicles registered before 5th December 2007 unless the new system represents a saving for the driver. This at least should have some German drivers thinking about their vehicle emissions in a year's time.

It remains unclear how these changes will play with the German Autoversicherung sector although many drivers will almost certainly be examining their options nearer the time through the medium of an online Preisvergleich.

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