Emissions trading generates 18.5 billion euros in revenue in Germany in 2024 – UBA
Clean Energy Wire
Germany's revenue from carbon pricing rose to a record 18.5 billion euros in 2024, up around 100 million euros from the previous year, said the country's Federal Environment Agency (UBA).
The national carbon pricing scheme for heating and transport was the main source of revenue, growing 21 percent from 10.7 billion in 2023 to 13 billion last year. Revenue from the European Emissions Trading Scheme (EU ETS 1), which covers greenhouse gas emissions from energy and energy-intensive industrial plants, intra-European aviation and maritime transport, fell around 30 percent to 5.5 billion euros. The drop came from a decrease in the carbon price and annual limits placed on the quantity of emission allowances auctioned, said the UBA.
Considering the figures, UBA president Dirk Messner renewed calls to return some of the CO2 price proceeds to citizens. "In order to ensure compensation for private households even if CO2 prices continue to rise, we now need the climate bonus ["Klimageld" in German] quickly in combination with specific support programmes for population groups that are particularly impacted," said Messner.
He added that CO2 pricing represented a "significant impetus for the climate-friendly restructuring of our society" if used with other measures. Germany's income from emissions trading is funnelled into the country's Climate and Transformation Fund, which uses the proceeds to promote the energy-efficient refurbishment of buildings, the expansion of renewable energies, and the decarbonisation of industry, among other things.
The national carbon price increased to 55 euros per tonne of CO2 at the start of 2025. This would make one litre of petrol or diesel fuel about 3 cents more expensive than in the year before, said the government. In 2024, Germany increased the national CO2 price from 30 to 45 euros – a more drastic increase than originally planned – in response to a constitutional court ruling which led to a shortfall of 60 billion euros in the Climate and Transformation Fund.
A new EU emissions trading scheme (ETS II) for the transport and building sectors will likely take effect in 2027 and replace Germany's national system.
