Breakthrough!

Breakthrough! Agreement on About 200 Million for Drought Relief

Finally: The government is moving forward with the long-discussed drought relief measures.(Bild: Krone-Collage/FOTOKERSCHI, APA/HELMUT FOHRINGER)

After tough negotiations, the government has reached an agreement on drought aid for Austria’s farmers as well as a climate protection law. Farmers plagued by the historic drought will receive 250 million euros in addition to the 400 million from hail insurance. The ÖVP prevailed on this issue. In return, the SPÖ and NEOS pushed through the climate protection law.

As previously reported, part of the relief will come in the form of a two-month suspension of social security contributions for farmers. This will cost 140 million and will initially be financed through the federal budget, but the funds will be recouped over the next five years.

To encourage as many farmers as possible to take out hail insurance, their premiums will be reduced by 10 percent next year, and government subsidies will be increased from 55 to 65 percent.

Farms facing liquidity problems due to the drought will receive support in the form of interest subsidies and payment deferrals totaling up to 50 million euros.

After chaotic negotiations, Federal Chancellor Christian Stocker stepped in and was able to broker an agreement among the three coalition partners. In doing so, he had to set aside the ÖVP’s economic wing’s demand to water down the planned Climate Protection Act. While there are minor modifications as a concession to the business community, the cornerstones—such as climate neutrality by 2040—remain in place.

In addition, a binding reduction in land consumption to a maximum of 2.5 hectares per day is to be adopted by the end of the year.

Marterbauer, Totschnig, and Bernhard present the agreement.(Bild: APA/TOBIAS STEINMAURER)

CCS Ban to Be Lifted
One key measure involves lifting the ban on CO2 storage, or CCS (Carbon Capture and Storage). Austria is currently one of the last countries in Europe to still have such a ban in place. Another concession to the business community is the acceleration of environmental impact assessments.

NEOS climate spokesperson Michael Bernhard attempted to defuse the heated debate with industry: “We’re not climate freaks, but future freaks,” he said, addressing IV President Georg Knill, who had caused outrage with the term “climate freaks.” Climate neutrality must not only be achieved but also make economic sense. In an interview with the “Krone,” Bernhard also emphasized that industrial companies with high CO2 emissions fall under EU regulations and are therefore not required to be climate-neutral until 2050.

Urgently Needed Climate Roadmap Is Delayed
Meanwhile, climate protection organizations welcome the fact that climate neutrality by 2040 remains the target. However, they criticize the delay in the climate roadmap. “The law provides Austria with clear guidelines for the transition to a future-proof economy. For the law to be effective, however, it needs to be more binding. This includes clear sectoral targets by 2040,” says WWF Austria. This requires the climate roadmap, which was delayed as part of the compromise.

The environmental organization Greenpeace also welcomes the federal government’s agreement. However, one shortcoming remains: climate neutrality by 2040 is to be achieved only outside the emissions trading system, thereby excluding a large portion of climate-damaging emissions from the energy and industrial sectors.

The Chamber of Commerce reiterates its displeasure with the 2040 climate neutrality target. Anything that goes beyond EU targets is unacceptable to the business community.

Scathing Criticism from the Opposition
The opposition’s reactions have been scathing, though they come from completely different directions. In the FPÖ’s view, everyone is a loser: Farmers, business owners, workers, drivers, renters, consumers, electricity customers—all those who are already suffering from energy prices that are far too high. “The winners are the eco-fundamentalists,” says party leader Herbert Kickl.

His counterpart from the Greens, Leonore Gewessler, believes the exact opposite. She sees “an agreement that isn’t worth the paper it’s written on.” “They talk symbolically about climate neutrality, and then immediately provide the excuse for why it can’t be achieved.”