CO2 pricing brings Germany record 13 billion euros in revenues in 2022
Clean Energy Wire
The European emissions trading system (EU ETS) and national carbon pricing brought Germany a record 13.2 billion euros from the sale of carbon dioxide pollution rights in 2022, the Federal Environment Agency (UBA) said. European emissions trading in the energy and industry sectors generated 6.8 billion euros in revenues, and 6.4 billion euros came from the national system for transport and heating fuels. “CO2 pricing by means of emissions trading is a crucial tool for achieving our climate goals,” UBA head Dirk Messner said. The revenues will go directly into the Climate and Transformation Fund (KTF), which for example supports the further development of electromobility, the development of the hydrogen industry and measures for energy efficiency. In 2021, the German Emissions Trading Authority (DEHSt), which is responsible for emissions trading in the country, had already recorded a record sum of 12.5 billion euros.
Pricing carbon dioxide is meant to give businesses an incentive to reduce fossil fuel use. In 2021, Germany introduced its own national system to cover the buildings and transport sectors, complementing the EU ETS, in place since 2005, which covers greenhouse gas emissions from power plants, large industrial installations and from inner European aviation traffic. In Germany, CO2 certificates are issued at a fixed price of 30 euros per tonne in 2023 - the same price level as last year, to shield consumers from rising prices in the energy crisis. “Ambitious climate action, social compatibility and economic competitiveness are not at odds with each other here, but rather are brought into harmony thanks to emissions trading,” Messner said.
In December, negotiators from the European Parliament, member state governments and the European Commission reached an agreement to strengthen the existing carbon market for industry and the power sector, introduce a new CO2 price for fuels in the buildings and transport sectors, and set up a fund to help consumers deal with the costs.
