(ANSA-AP) - BERLIN, 20 SEP - The German government inched closer Friday to agreeing a new package of measures for tackling global warming, as protesters rallied in the capital to demand decisive action against climate change.

German news agency dpa reported that the country's governing parties, who have been split over how best to cut the country's greenhouse-gas emissions, achieved a breakthrough following all-night talks in Berlin. Chancellor Angela Merkel planned to present details of the plan later in the day, following a special Cabinet meeting. The direction Europe's biggest economy takes on climate change is being closely watched elsewhere.

The biggest divide between Germany's governing parties was over how to charge for carbon emissions. Dpa reported that Merkel's center-right Union bloc and the center-left Social Democrats have agreed to put a price on transportation and heating fuels, starting at 3 euro-cents (about 3.3 U.S. cents) per liter of diesel or gasoline in 2021, rising to ten euro-cents (about 11 U.S. cents) in 2026. The parties agreed to levy the charge with the help of an emissions trading system, or ETS. The advantage of such as system over a hike in fuel taxes is that it can be integrated into the Europe Union's existing ETS for heavy industry and the power sector. By setting a cap on the quantity of certificates available, and steadily reducing that level, Germany and the EU could also ensure emissions targets are met. (ANSA-AP).