Austria's Klimabonus, set to be distributed from September 2, has sparked a debate over its fairness between urban and rural areas.

The bonus, ranging from 145 to 290 euros, is automatically paid to over 90% of eligible citizens, aiming to offset costs from the CO2 tax.

However, the Austrian Association of Cities criticizes the scheme for disadvantaging urban residents who rely on public transport and face higher living costs.

They argue that the regional adjustments favor rural areas, where public transport is less accessible.

Despite these criticisms, Climate Minister Leonore Gewessler defends the bonus as a significant digitalization project, ensuring swift payments to millions.

The debate highlights ongoing tensions in balancing environmental policies with social equity.