German environment agency demands higher tax for dirty cars

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The German Environment Agency has advocated making cars with high carbon dioxide (CO2) emissions more expensive given the boom in the purchase of sport utility vehicles (SUVs) in the country.

“We must find measures to promote climate friendly transport,” Federal Environment Agency President Maria Krautzberger said Tuesday.

A proposal from the agency is an income neutral bonus penalty system for new vehicles.

A penalty would be levied on cars with high CO2 emissions through a tax increase over several years.

Also bonus would be paid through targeted promotion of cars with low CO2 emissions.

The agency made the comments after sales of SUVs increased sharply again in July.