German climate package to cost over $55bn

The climate package agreed by the German governing coalition is to cost more than 55 billion dollars (50 billion euros) government sources said on Friday.

The package to cut greenhouse gas emissions was agreed after weeks of coalition wrangling and an all-night negotiation session.

A formal announcement was expected later in the day.

The measures include a ban on installing oil-fired heating in buildings from 2025, with a subsidy for householders prepared to switch to more climate-friendly alternatives.

A price for emissions of carbon dioxide has also been agreed that will take effect via trading in emissions certificates.

This will result in price rises for petrol and diesel.

The government is also reported to have agreed measures to ease the burden on consumers.