Berlin (dpa) - The German cabinet passed significant parts of its climate package at its weekly session in Berlin on Wednesday, including higher taxes on flying and cutting the cost of rail travel.

The measures, which need to be approved by parliament, included a stipulation to cut the value-added tax on rail tickets to 7 per cent from 19 per cent.

Rail travel is seen as more environmentally friendly than flying because of the air pollution associated with jet fuel.

The cabinet also passed measures on plans to impose a price on carbon dioxide emissions from transportation and heating buildings, government sources told dpa.

Tax rebates over three years were planned for homeowners insulating walls and roofs, or replacing windows, doors or central heating.

The German parliament was to begin considering the package within the coming weeks.

According to information received by dpa, the parliamentary procedure was to be expedited by having the legislation considered simultaneously by both houses.

The aim was to conclude passage of the legislation, hammered out over long months of negotiation between the coalition partners, by the beginning of the Christmas recess on December 20.

The aviation sector was critical of the measures, said the head of the Federal Association of the German Aviation Sector, Matthias von Randow.

"Increasing taxes on air travel in another purely national process will exacerbate the distortion in competition at the expense of German airlines and airports," von Randow said.

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