Germany to decide on climate levy

Germany is weighing up two alternative proposals on how to cut CO2 emissions from the energy sector and plans to make a decision on July 1, Economy Minister Sigmar Gabriel said on Wednesday.

Gabriel said the economy ministry will decide between its original proposal -- to impose a penalty on the oldest and most polluting coal power plants -- and a suggestion from trade union IG BCE to gradually shut down coal power stations.

"The climate levy has the advantage from out point of view that it is efficient and cost-efficient," Gabriel told an energy industry conference.

"It has the disadvantage as the companies point out with understandable arguments that it could lead to job losses and a collapse of the industry that we don't want."