German lawmakers have reached a preliminary agreement to raise the planned CO2 price for the buildings and transport sectors.

The starting price of the mechanism contained in the country’s so-called climate package is to be increased from 10 to 25 euros for the year 2021 and will gradually climb to 55 euros in 2025, according to Clean Energy Wire. Additional revenues will be used to lower the power price, a document on the agreement said.

Energy industry, researchers and NGOs who had criticised previous plans as not ambitious enough welcomed the new deal, whereas chemical industry association VCI warned it could threaten the competitiveness of German companies.